Norsk Hydro Teams Up With Eolus To Purchase Wind Power Project

Norsk Hydro Teams Up With Eolus To Purchase Wind Power Project

Norwegian aluminium producer Norsk Hydro ASA’s dedicated renewables company Hydro REIN and Sweden’s wind power firm Eolus signed an agreement last week to purchase Enercon GmbH’s Stor-Skälsjön wind power project.

Financial terms of the deal were not revealed. Hydro REIN will hold a 49-percent share, while Eolus would hold 51 percent of the project, which is currently under construction. The sale process will commence over the summer, with supplier contracts to be settled in the fall.

Final commissioning of the project is expected to be during the latter half of 2023.

Olivier Girardot, head of Hydro REIN, elaborated upon the deal in a related press release.

“This project is an important step in developing Hydro REIN’s portfolio in the Nordics and toward our ambition to invest in 1 GW of projects by the end of 2021. We look forward to developing this project jointly with Eolus, a partner with a strong track record in wind project development in Sweden.”

Hydro says the project will generate 260 MW per annum of power, and it has agreed to purchase 70 percent of it.

“We are very pleased to be able to form this partnership with Hydro REIN and look forward to the cooperation in constructing Stor-Skälsjön,” commented Marcus Landelin, Chief Operating Officer at Eolus. “With the PPA and the ownership by Hydro, we can offer an attractive investment opportunity in the Swedish renewable electricity sector.”

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.