OSLO (News release) -- The Ministry of Climate and Environment amends The Norwegian Environment Agency's decision of 19 December 2013 on the basis for CO2 compensation for Norske Skog Saugbrugs AS. The changes are that Saugbrugs will not receive a reduction in CO2 compensation for the years 2018, 2019 and 2020.

Sven Ombudstvedt, Chairman of the Board and CEO of Norske Skog, commented: "This is a very gratifying message, and I would like to pay tribute to the Government, which has used the legal scope here to provide one of the world's most climate-friendly paper mills with CO2 compensation in line with other qualified industries".

Norske Skog's long-term strategy remains to improve the core business, to convert certain of the Group's paper machines and to diversify the business within the bioenergy, fibre and biochemical markets.

Norske Skog Saugbrugs is currently exploring the opportunity to create new, promising bio-based products. Already in 2016, biogas production commenced based on waste streams from paper production, which is delivered to local public transportation. Research and development work is now taking place concerning wood based construction board, biocomposites and nanocellulose (MFC) in collaboration with other industrial companies and with support from, among others, Enova, Innovation Norway and the Research Council of Norway.