Statkraft (OSL:STAEN) And Eramet Join Forces On Energy Recovery

Statkraft (OSL:STAEN) (Sauda/Lilleaker, 25 September 2008) Statkraft AS and Eramet Norway AS have signed a letter of intent regarding energy recovery from excess gas at the smelting plant in Sauda. The project will capture energy which today goes straight into the air, and will provide more than 100 GWh of new electricity per year.

"The letter of intent between Statkraft and Eramet Norway gives us the opportunity to together with our industry partner implement environmentally friendly and energy saving measures which will result in more efficient energy consumption. Initiatives for energy efficiency in cooperation with the industry are a new and prioritized target area for which Statkraft has great expectations. This type of cooperation is important and perfectly aligned with our strategy as a producer of environmentally sound energy," says Statkraft's Executive Vice President Siri Hatlen.

The project shall contribute to safeguarding the energy from the Sauda smelting plant by burning the CO gas, which today is flared, in a steam-producing boiler. The steam will in turn run a turbine that produces more than 100 GWh of electricity per year, equivalent to the annual consumption of 5000 households. The initiative also has a good effect on the environment by reducing NOx emissions.

"In addition to the cooperation on long-term power supply to our smelting plants, we are now also starting an industrial cooperation with Statkraft to ensure environmentally sound and energy efficient solutions. With Statkraft's expertise in energy production, we will work together to find good answers to our future energy challenges," says Odd Husmo, managing director of Eramet Norway.

Investments in the project will be approx. NOK 250 million, and the project will receive support from Enova in the amount of approx. NOK 35 million. According to the plan, the installation will be ready for use at the end of 2010.

In 2006, Statkraft and Eramet entered into a long-term, commercial power supply contract for the period 2011 to 2020 for the company's smelting plants in Sauda and Porsgrunn.

Statkraft is a European leader within renewable energy. The Group develops and generates hydropower, wind power, gas power, solar power and district heating, and is a major player on the European energy exchanges. In Norway the company supplies electricity and heat to around 600,000 customers through its shareholdings in other companies. In 2007 Statkraft posted a profit after tax of EUR 827 million and employed more than 2,300 employees in ten countries. The world needs pure energy. This is what Statkraft delivers every day.

Eramet is a French industrial group. Their business is concentrated on mining and the metallurgical industry. The group is a major international player within three business areas: special steel, manganese and nickel. Eramet is the world's largest producer of manganese alloys and the world's second largest supplier of high-grade manganese ore. Eramet Norway AS is a part of Eramet's manganese activities, with smelting plants in Sauda and Porsgrunn, as well as a development group in Trondheim. We are the world's leading producer of refined manganese alloys, and represent approx. 1/3 of the manganese division's total production. In 2007, the company's approx. 400 employees had sales of approx. NOK 3.0 billion. Eramet recently took over the industrial and trading activities of the Tinfos group, thus strengthening their position in the world market.

For further information: Siri Hatlen, Executive Vice President, Statkraft AS Tel.: +47 24 06 72 25

Lars Magnus Günther, Communication Advisor, Statkraft AS Tel.: +47 91 24 16 36

Boy Kåre Kristoffersen, Senior Advisor, Enova SF Tel.: +47 73 19 04 42

Odd Husmo, Chief Executive Officer Eramet Norway AS Tel.: +47 35 56 18 15

Bernt-Jarle Dolmen, Vice President Corporate Affairs, Eramet Norway AS Tel.: +47 52 78 51 25

Statkraft

http://www.statkraft.com/

ISIN: NO0010246234
Stock Identifier: XOSL.STAEN