Statkraft Varme and Nordkraft have been granted a licence

The licence applies to the establishment of a district heating plant based on timber products such as wood chips for heating and will provide a new, environmentally friendly energy source to houses in central Narvik.

”We are very pleased that the licence is now in place, signalling the start of the detail planning,” says CEO of Nordkraft AS, Klaus Hvassing.

The district heating plant will consist of a district heating centre and about 9 km of district heating grid to distribute the heat to subscribers in Narvik. The final location of the heating centre and grid lines will be decided by the planning now about to start. The most relevant customer groups are industry and commerce, public institutions and major housing units in the area. Standalone houses will be relevant for connection to the grid only in exceptional cases.

The planning will also form the basis for the investment decision that Statkraft Varme and Nordkraft will have to make before construction can start. The decision is expected within summer 2012. If a positive investment decision is made, there will be major emphasis on achieving a broad and active dialogue about the project and the development, with both public players, potential local suppliers, potential customers and affected neighbours.

Statkraft Varme and Nordkraft are planning the joint construction, operation and ownership of the district heating plant. A joint venture will be established where Statkraft Varme will own at least 66% and Nordkraft up to 34%.
The office location is Narvik.