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 [email protected]
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