Norsk Hydro: Hydro and Macquarie formally begin renewable energy partnership
24 Giugno 2024 - 7:00AM
Norsk Hydro: Hydro and Macquarie formally begin renewable energy
partnership
Hydro has completed the transaction for the sale of 49.9
percent of renewable energy company Hydro Rein to Macquarie Asset
Management.
The financial closing of the transaction that was announced in
October 2023, is an important accomplishment for the execution of
Hydro’s strategy to grow in renewable energy.
“We are excited to conclude the transaction, marking the next
chapter in our renewable energy partnership with Macquarie Asset
Management. Hydro Rein is well equipped to execute on its ambitious
growth agenda, with a strong project pipeline going forward.
Industrial decarbonization begins with renewable energy and Hydro
Rein will be instrumental in supporting Hydro as well as other
industries with the energy we need to reduce our CO2 emissions,”
says Hydro’s President and CEO, Eivind Kallevik.
The transaction values Hydro Rein at USD 333 million, per June
30, 2023, subject to closing adjustments. Macquarie contributes USD
214 million of this amount at closing. The funds will be
transferred by June 25, 2024. The remaining part of the committed
capital will be contributed over time as the need arises.
The impact from the transaction will be recognized in Hydro’s
income statement for the second quarter and excluded from “Adjusted
results.” With the capital provided by Macquarie, Hydro Rein is
expected to be fully funded for its current projects under
construction and development cost for projects in the pipeline in
the coming years, with an ambition that no new equity will be
called on from the owners beyond committed capital.
Hydro and Macquarie have a longstanding relationship within
renewable energy. The companies have collaborated on several
projects since 2017, and have developed 1.3 GW of renewable energy
capacity, including several wind projects across the Nordics and a
456 MW onshore wind farm in Brazil. These projects include power
purchase agreements with Hydro to help decarbonize its
operations.
Hydro Rein has 8.4 GW gross capacity in development across its
core markets in the Nordics and Brazil. The company has developed
strong industrial partnerships since launching in 2021, and the
projects Hydro Rein is engaged in have signed long-term power
purchase agreements totaling 5.3 TWh annually. This includes
offtake agreements with Hydro’s alumina refinery Alunorte, primary
aluminium plant Albras and the bauxite mine Paragominas. Hydro Rein
also co-developed a wind project that provides clean electricity to
power the Norwegian operations of telecommunications company
Telenor.
“Decarbonizing vital industrial materials like aluminium is a
key challenge of the energy transition. Hydro Rein is helping to
pioneer low-carbon aluminium smelting and is playing a leading role
in enabling industries like the automotive sector to reach its
decarbonization targets. I look forward to joining forces once
again with Hydro, combining our capabilities to unlock a greener
future for industry, and the communities and markets served by
industry,” says Mark Dooley, Global Head of Green Investments at
Macquarie Asset Management.
As of today, Hydro Rein is established as a joint venture (JV)
where Hydro owns 50.1 percent and Macquarie 49.9 percent of the
company. All of Hydro Rein’s assets in Brazil, Denmark, and Sweden,
and all Energy Solutions projects, are included in the joint
venture. Hydro Rein’s projects in Norway will also be included in
the joint venture, except for potential onshore wind projects
located close to Hydro’s smelters, such as Snøheia Industrikraft.
These projects will continue to be developed and owned by Hydro
together with local partners. Hydro Rein’s organization will
support Hydro in developing these projects through service
agreements.
Investor contact: Martine Rambøl Hagen+47
91708918Martine.Rambol.Hagen@hydro.com
Media contact: Halvor Molland +47
92979797Halvor.Molland@hydro.com
Grafico Azioni Norsk Hydro ASA (TG:A2R0MA)
Storico
Da Dic 2024 a Gen 2025
Grafico Azioni Norsk Hydro ASA (TG:A2R0MA)
Storico
Da Gen 2024 a Gen 2025