Norsk Hydro's Renewables Company Gets $332 Million Investment From Macquarie
October 24 2023 - 5:49AM
Dow Jones News
By Dominic Chopping
Norsk Hydro said Tuesday that Macquarie Asset Management will
invest $332 million in its Hydro Rein renewable energy company in
return for a 49.9% stake.
The investment means Hydro Rein will be fully funded for its
current projects under construction and development costs for
projects in the pipeline in the coming years, it said.
Through the agreement, Norsk Hydro and Macquarie will form a
joint venture where Norsk Hydro will own the remaining 50.1% stake
with all of Hydro Rein's assets in Brazil, Denmark and Sweden, and
all energy solutions projects, included in the venture.
Hydro Rein is working on wind and solar projects in the Nordics
and Brazil as well as energy solutions projects such as battery
storage, energy efficiency, and onsite generation in Europe and
North America.
Hydro Rein's projects in Norway will also be included, except
for potential onshore wind projects located in regions close to
Hydro's smelters, it added.
Hydro Rein currently has 75 employees and offices in Oslo, Rio
de Janeiro and The Hague.
Closing of the transaction is expected in second quarter
2024.
In a separate announcement, Norsk Hydro said it swung to a
third-quarter net loss attributable to shareholders of 358 million
Norwegian kroner ($32.3 million) from a profit of NOK6.85 billion
in the same period last year amid challenging and uncertain
markets.
Write to Dominic Chopping at dominic.chopping@wsj.com
(END) Dow Jones Newswires
October 24, 2023 05:34 ET (09:34 GMT)
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