Hydro has completed the transaction for the sale of 49.9 percent of renewable energy company Hydro Rein to Macquarie Asset Management. The financial closing of the transaction that was announced in October 2023, is an important accomplishment for the execution of Hydro’s strategy to grow in renewable energy.
The transaction values Hydro Rein at $333 million, per June 30, 2023, subject to closing adjustments. Macquarie contributes $214 million of this amount at closing. The funds will be transferred by June 25, 2024. The remaining part of the committed capital will be contributed over time as the need arises.
The impact from the transaction will be recognized in Hydro’s income statement for the second quarter and excluded from ‘Adjusted results.’ 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, with an ambition that no new equity will be called on from the owners beyond committed capital.
Hydro and Macquarie have a longstanding relationship within renewable energy. The companies have collaborated on several projects since 2017, and have developed 1.3 GW of renewable energy capacity, including several wind projects across the Nordics and a 456 MW onshore wind farm in Brazil. These projects include power purchase agreements with Hydro to help decarbonize its operations.
“We are excited to conclude the transaction, marking the next chapter in our renewable energy partnership with Macquarie Asset Management. Hydro Rein is well equipped to execute on its ambitious growth agenda, with a strong project pipeline going forward. Industrial decarbonization begins with renewable energy and Hydro Rein will be instrumental in supporting Hydro as well as other industries with the energy we need to reduce our CO2 emissions,” says Hydro President and CEO, Eivind Kallevik.