January 22, 2007

Norway's Statoil may reconsider to invest in Denmark ethanol plant

Norwegian oil company Statoil ASA (STO) might reconsider its plans to invest DKK750 million (US$130.33 million) in a new bioethanol plant in Denmark if the government doesn't adopt a plan which requires vehicles to mix ethanol with normal fuel, reported Denmark's "Boersen".

"If bioethanol doesn't expand on the market, we won't see a bioethanol plant in Kalundborg. How the market expansion happens is unimportant to us. But we don't think it will happen without political demands for it to be mixed into petrol," said Statoil spokesman Soeren Bjelka.

The ruling Danish Liberal Party's energy chairman Lars Chr Lilleholt said his party was prepared to demand that petrol be mixed with 2 percent ethanol this year and by 6 percent by 2010. However, the party's coalition partners, the Conservatives have opposed the same.