Norway’s aluminium titan Norsk Hydro ASA’s subsidiary Hydro Rein and Commerz Real have announced plans to form a joint venture for the acquisition and development of two solar power projects in Denmark.
According to Hydro, the two projects are in the early stages of development and are scheduled to begin construction in 2024. Ultimately the projects are expected to generate 1 GW when production begins in 2026.
Ownership of the project will be split evenly between Commerz Real and Hydro Rein. GreenGo Energy, the original developer of the project, will continue development until the project’s start. Currently the projects have estimated peak capacities of 170 MW and 192 MW, with a total annual production of 412 GW.
Olivier Girardot, Head of Hydro Rein, said in a press release that the project will help the firm in its overarching goal of decarbonization.
“We are proud to announce our very first investment in Denmark and Hydro Rein’s first solar investment in the Nordics, together with a solid partner, Commerz Real. The investment will diversify our Nordic portfolio in terms of technology and production, and we see great potential in combining wind and solar to help decarbonize major industrial players. Backed by strong governmental ambitions, we are looking forward to explore more opportunities in Denmark.”
Barkha Mehmedagic, Global Head of Institutional Sales and Group Treasury at Commerz Real, noted the benefits to all parties in the deal.
“The Danish investment market for photovoltaic offers the potential for growth and diversification for our institutional investors in particular. With Hydro Rein and GreenGo Energy, we also have experienced partners firmly rooted in the Scandinavian market by our side.”
Karsten Nielsen, CEO of GreenGo Energy, said the project is a major event for the firm.
“We are honored to partner with two profound and complementary institutions in the renewable energy industry. This is our first GW scale partnership agreement for our Mermaid portfolio in Denmark. It is a big milestone to helping us accelerate the energy transformation with significant impact well before 2030.”
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.