Norwegian aluminium smelter Norsk Hydro ASA and municipal utility Lyse completed the merger of a portion of each’s hydropower production yesterday, forming the new company Lyse Kraft DA.
Lyse Kraft will be the new owners of several hydropower assets in Norway’s southwestern reaches, including Røldal-Suldal Kraft (RSK). Hydro will continue to operate the plant, and it will assume operation of the incoming Lyse assets, with Lyse to take on market activities and water disposal at RSK and the other Lyse Kraft assets.
Hydro has an interest of 25.6 percent of the new firm, with Lyse owning the majority 74.4 percent share. Lyse Kraft has an overall power production capability of 9.5 TWh.
As of now Hydro is the third-biggest operator of renewable power in Norway, with a portfolio of assets that churn out 13.6 TWh per year. The firm owns 9.4 TWh of renewable power production in equity shares.
Norsk Hydro, which was founded in 1905, financed by the Swedish Wallenberg family and French banks, began its life named Norsk hydro-elektrisk Kvælstofaktieselskab (literally, “Norwegian hydro-electric nitrogen limited”) by Sam Eyde. The Norwegian government owns approximately 40% of the company at the present time. Norsk Hydro is one of the largest aluminium companies in the world, with plants in Rjukan, Raufoss, Vennesla, Karmøy, Høyanger, Årdal, Sunndalsøra, and Holmestrand. Norsk also has several plants abroad, including in Germany and Brazil.