SCA, E.On form wind power joint venture

Dec 7, 2012 - Swedish hygiene and paper products maker Svenska Cellulosa AB (STO:SCA-A), or SCA, said Friday it has struck a joint venture agreement with German energy group E.ON (ETR:EOAN) to develop wind power projects.

The joint venture involves about 270 wind power facilities and a total energy production of over 2 TWh, equal to the electricity needed to meet the power demand of 100,000 Swedish homes, Ake Westberg, head of SCA's energy unit said. It will cover areas operated by SCA Vind, including Hastkullen and Bjornlandhojden in Sweden's Harnosand municipality and Kramfors and Timra municipalities in central Sweden. The venture will also work on other SCA Vind projects located in southern Ange and in Ljusdal municipalities in the central part of the country.

Future investment decisions would be made as early as 2014 or 2015, the Swedish partner added.

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