Another contract has been won by the wood pellets plant owned by Statoil and forest products group Norske Skog at Brumunddal north of Oslo.
Covering 1,200 tonnes per year, or 15 per cent of annual output from the facility, this deal with Holmen Biovarme will run initially for two years.
The pellets, which represent 5.6 gigawatt-hours of energy, are to be used in a district heating system being built in Tynset near the Swedish border.
"This is a large and important contract for our wood pellets," says Geir Ove Ropphaugen, Statoil's project manager for energy solutions.
Previously called biopellets, the fuel is created from forest industry waste products and provides two-five times the energy content of unprocessed biological fuel.
To avoid high transport charges which add to pellet cost, the Langmoen Trepelletsfabrikk plant is concentrating on customers located within a radius of 200-250 kilometres.
For the same reason, Statoil also utilises lorries in the area which are delivering other goods and would otherwise have returned to their base empty.
That helps to make the pellets competitive with other energy sources, such as heating oil.
The Agricultural University at Ã…s south of Oslo, which takes 2,400 tonnes of pellets annually, ranks today as the plant's largest single customer.