Norway is a very sparsely populated country, and has huge areas covered by spruce and pine forest. We have long traditions of exporting timber, lumber, paper etc. based on this resource, so naturally the prospect of using timber for biofuel production is interesting. Norsk Forskingsråd (Norwegian Research Council) conducted a study some years ago, which revealed that even if all available forest was used for this purpose, we can't hope to even cover our own needs. Google "Fra skog til drivstoff" to get the report (in Norwegian).
Net Norwegian forest biomass growth per year contains approximately 35 TWh of energy. Conversion to bioethanol is approximately 50% efficient, so a maximum of less than 20 TWh of bioethanol could theoretically be produced in a sustainable fasion. Norway burns off approximately 60 TWh of fossil fuels per year.
For comparison, we produce on average 120 TWh of electricity per year.
Farming yields more per area, but that affects food prices. Second generation biofuel from timber yields far too little energy. The numbers just don't work out, so biofuel should be reserved for applications where EVs can't do the job.
Maybe they can get algae to produce oil at some point in the future, maybe lithium-air batteries become available. Until then we have to work with what we have.