Hydro To Form Hydro Rein JV With Macquarie Asset Management To Develop More Renewable Energy

(RTTNews) - Norsk Hydro ASA (NHY, NHYDY.PK, NHYDY.PK), a Norwegian aluminium and renewable energy firm, announced Tuesday that it has signed a deal to form a joint venture with Macquarie Asset Management, involving its renewable energy company Hydro Rein.

As per the agreement, Hydro will own 50.1 percent of the JV, while Macquarie will buy the remaining 49.9 percent of Hydro Rein. Macquarie intends to invest equity of $332 million to obtain a 49.9 percent ownership of Hydro Rein. The transaction values Hydro Rein at $333 million.

Closing of the transaction is expected in second quarter 2024, subject to standard regulatory approvals and transaction terms required by both sides.

The JV will include all of Hydro Rein's assets in Brazil, Denmark and Sweden, and all energy solutions projects. Hydro Rein's projects in Norway will also be included in the joint venture, except for potential onshore wind projects located in the regions close to Hydro's smelters, such as Snøheia Industrikraft.

With the capital provided by Macquarie, Hydro Rein is expected to be fully funded for its current projects under construction and development cost for projects in the pipeline in the coming years.

Hydro Rein, since launched in 2021, has built a significant portfolio of renewable energy projects and contracts with industrial off-takers. The current 6.9 GW portfolio pipeline in the joint venture consists of renewable energy projects from projects under construction to projects in early-stage development in the Nordics and Brazil.

Hydro Rein's captive share in the four projects under construction will be 1.7 TWh. It currently has 75 employees and offices in Oslo, Rio de Janeiro and The Hague.