St1 Oy buys part of StatoilHydro ASA’s fuel distribution station network in Sweden and Norway

Energy company St1 Oy signed an agreement on April the 1st concerning the purchase of 198 unmanned stations in Sweden and Norway from StatoilHydro ASA. The transaction, subject to local regulatory approvals and final EU buyer approval, is intended to be completed by summer 2009.

Under this agreement, St1 is purchasing 158 fuel distribution stations in Sweden (118 Hydro/Uno-X stations and 40 JET stations) and 40 Jet service stations in Norway.

With the new acquisitions, St1 will enlarge its existing network in Sweden to cover the entire country, with more than 200 fuel distribution stations nationwide. This network expansion supports the launch of St1’s waste-to-ethanol concept beyond Finland. St1 introduced Refuel, a high-concentration ethanol, on the Finnish market at the beginning of April, and a strong network of fuel distribution stations will help St1 to later introduce the product on the Swedish market as well. Refuel RE85 contains 80% to 85% of bioethanol produced by St1 from Finnish food industry biowaste using its Etanolix® concept.

E85 ethanol has been on the market in Sweden for quite some time now, following the introduction of ethanol-powered flex-fuel cars. St1 aims to begin production of biowaste ethanol in Sweden as quickly as possible to replace imported ethanol. The first such projects are currently being
negotiated.

The fuel distribution stations acquired in the Oslo region mark an important bridgehead for St1 on the Norwegian fuel market. The company is exploring potential for expansion in Norway.

The fuel distribution stations now acquired are state-of-the-art and thus well suited to St1’s practice of cost-efficient remote operations. Expanding the network will also further improve the company’s cost-efficiency in Finland. With the present transaction, St1’s market share in fuel sales will reach approximately 8% in Sweden and just under 5% in Norway. Also, the net sales of the St1 Group will increase to about 1.5 billion euros.

Further information:
www.st1.eu

Kim Wiio, St1 Oy, Managing Director
+ 358 44 5678964, kim.wiio(a)st1.fi

St1 is a Finnish energy company whose vision is to be the leading producer and seller of CO2-aware energy. The company researches and develops economically viable, environmentally sustainable energy solutions. St1's energy services cover everything from energy consultancy to heat production solutions and from wind power to high-concentration bioethanol Refuel RE85 produced from biowaste. In total, St1 has more than 450 petrol stations in Finland, Sweden and Poland. The St1 Group employs just over 160 people, and its turnover will be in excess of 1 billion euros this year.

St1 stays true to its vision by turning waste into bioethanol with the help of the company's own dispersed Etanolix® production concept, which has won this year's Finnish Chemical Industry Innovation Award, the national INNOFINLAND 2008 award patronised by the President of the Republic of Finland, and second place in the European Environmental Press Award 2008 contest.