Norwegian state-owned power giant Statkraft is expected to invest significant funds in recreating itself as Europe's largest renewable energy company.

The company is understood to have more than NOK 5.4 billion (€692 million) in cash and a NOK5 billion (€641 million) credit facility with ten banks ready to spend on new hydropower, renewables and gas-fired power plants. Baard Mikkelsen, chief executive officer of Statkraft said: “Our vision is to be the leading European player in green energy,” according to Dow Jones Newswires.

The company recently finalised a NOK3.8 billion (€487 million) deal with E.On Sverige to take over 24 hydroelectric stations in Sweden and Finland and it is also building some of Europe’s biggest windfarms, including the Smoela park in northern Norway.

“We recently scanned through Europe and are looking for more gas-fired generation and more hydro…where we see access to projects or existing plants,” said Mikkelsen.

The company is also understood to be considering some small-scale hydro projects and plants in France, Germany and Eastern Europe.