Macquarie Asset Management has signed an agreement with Hydro relating to the future acquisition of 49.9 percent of Hydro's renewable energy company Hydro Rein.
Through the agreement, Hydro and Macquarie Asset Management will form a joint venture (JV) where Hydro will own the remaining 50.1 percent of the company. Macquarie Asset Management intends to invest equity of USD 332 million to obtain a 49.9 percent ownership of Hydro Rein. The transaction values Hydro Rein at USD 333 million, per June 30, 2023. With the capital provided by Macquarie Asset Management, 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, with an ambition to become self-funded.
The transaction is a further demonstration of the successful and complementary partnership that Hydro Rein and Macquarie Asset Management have built over many years. The two companies are currently partners in a large-scale onshore wind farm which is under construction in the northeast of Brazil. Through Power Purchase Agreements (PPAs), the project will supply electricity to Hydro's bauxite mine, Paragominas, and its alumina refinery, Alunorte. Hydro and Macquarie have also worked together on wind farm projects in Sweden in 2017 and 2018, contributing to the development of the Nordic market for long-term PPAs.
"This transaction marks an important milestone for the execution of Hydro's strategy to grow in renewable energy. We launched Hydro's renewables ambitions through Hydro Rein less than three years ago. In a short time, the company has built a solid and impressive portfolio of renewable energy projects. All of these will be key contributors to reducing CO2 emissions for Hydro and other industries," says President and CEO Hilde Merete Aasheim.
"We are excited to enter the next chapter of Hydro's transition to net-zero together with a solid partner in Macquarie Asset Management. We believe their commercial strength and leading expertise in global renewable project development will complement Hydro Rein ...