Statkraft is offering its district heating operations for sale.

Statkraft A/S, a power producer headquartered in Norway, has announced its decision to withdraw from the district heating sector. This sector currently supplies over 1.2 TWh of renewable energy each year to over 40,000 end consumers in Norway and Sweden.

According to a press statement, the Oslo-based company is seeking new owners for Statkraft Varme who have the necessary means and drive to grow the unit from a long-term, industrial viewpoint.

Statkraft`s district heating operations rely on water-based heating systems that harness excess renewable energy from local sources such as biofuels, garbage, and industrial heat waste. Statkraft Varme, which employs approximately 150 people, has been operating in the energy recovery and district heating sector since 1982. The company has a presence in 13 different sites throughout the two Nordic countries.

"To achieve economies of scale and maintain competitiveness, substantial investments will be necessary for the company`s future growth. However, it is important to note that these investments will have limited synergies with other divisions of Statkraft," stated Jurgen Tzschoppe, the executive vice president of Statkraft.

The sale does not have a precise schedule established. The corporation indicated that it anticipates the procedure to be time-consuming.