Norsk Hydro recently announced that it has secured a significant investment from Macquarie Asset Management. The $332 million investment will grant Macquarie a 49.9% stake in Norsk Hydro’s renewable energy subsidiary, Hydro Rein.
This investment provides crucial funding for Hydro Rein’s ongoing projects and covers the development costs of future ventures. With this partnership, Norsk Hydro will retain a majority ownership of 50.1% and hold all of Hydro Rein’s assets, including its projects in Brazil, Denmark, and Sweden. Additionally, the joint venture encompasses all energy solutions projects within the company.
Hydro Rein is focused on several initiatives, including wind and solar projects in the Nordics and Brazil. They are also actively involved in energy solutions projects such as battery storage, energy efficiency, and onsite generation across Europe and North America. However, it is worth noting that potential onshore wind projects near Hydro’s smelters in Norway will not be part of this arrangement.
Currently, Hydro Rein employs 75 professionals and maintains offices in Oslo, Rio de Janeiro, and The Hague. The transaction is set to close in the second quarter of 2024.
In a separate announcement, Norsk Hydro revealed a net loss of 358 million Norwegian kroner ($32.3 million) for the third quarter, a significant deviation from the NOK6.85 billion profit reported in the same period last year. Challenging and uncertain market conditions are cited as the primary drivers behind this shift.