Out of wind power project
Unsatisfactory prospects for profitability have prompted Statoil to pull out of a wind farm project on the island of Smøla in mid-Norway.
A possible power development at this location has been studied by the group in partnership with Norsk Hydro and the local Nordmøre Energiverk energy utility.
"Biological fuel for heating represents the most profitable renewable energy option for us," reports Bente Hagem, vice president for Nordic energy at Statoil. "We'll accordingly be making a commitment there."
The group is also developing energy-efficient solutions such as heat pumps.
Ms Hagem believes renewable energy can provide an interesting supplement to power supplies in the Nordic region, but says it will not curb growing demand for imported electricity from continental Europe.
The local authorities on Smøla have allocated a site for 100 modern wind turbines, with construction due to start in 2000. Nordmøre Energiverk is continuing work on the project in partnership with Hydro.