Under the likely terms of the final deal, expected to be signed in autumn 2009, Statkraft will take a 90% share in Södra's wind development vehicle, SödraVindkraft. The subsidiary comes with a development portfolio of nearly 300 wind farms, capable of producing 1.6 terrawatt-hours of electricity a year if they are all fully built.

The two companies will also jointly construct a nearly 30km-long waste-heat pipe running from one of Södra’s timber factories in Väröbacka to Statkraft’s district-heating grid in Kungsbacka. The project will initially supply 135 gigawatt hours of power a year.

The companies claim the pipeline will be one of western Sweden’s largest infrastructure projects, running near Göteburg along Sweden’s southwest coast. Construction is expected to take two years.

The two companies also signed an agreement that will see Södra to supply biofuel to several of Statkraft’s district-heating plants in Sweden.