OSLO, NORWAY: An industrial partnership of Hafslund Eco, Infranode and HitecVision has entered into an settlement with Fortum to buy Fortum’s 50 per cent share in Fortum Oslo Varme.
As a half of the transaction, the City of Oslo will switch its 50 per cent stake in Fortum Oslo Varme to Hafslund Eco. Following the transaction, Hafslund Eco will become the bulk proprietor with 60 percent possession in Fortum Oslo Varme, whereas Infranode and HitecVision will personal 20 percent each.
The transaction means that Hafslund Eco will increase its energy manufacturing by almost 2 TWh yearly and secures possession to critical infrastructure that delivers important services to the people in Oslo. District heating are attractive assets with a decrease underlying risk than the hydropower enterprise and fits in thoroughly with Hafslund Eco’s existing renewable portfolio. Through its possession in Eidsiva Energi, Hafslund Eco currently owns district heating business in Innlandet county.
The partnership has a transparent goal of realizing the project for carbon seize (CCS) at Klemetsrud, which will proceed with undiminished strength.
The transaction entails a consideration for Fortum Oslo Varme of roughly NOK 20 billion on a 100 per cent enterprise worth basis. Upon completion, the partnership will buy 50 per cent of the shares for roughly NOK eight billion and repay NOK 2 billion in shareholder loans to Fortum, which implies a payment for Hafslund Eco of roughly NOK 2 billion. The shares from Oslo Municipality will be transferred to Hafslund Eco as a property contribution, and Hafslund Eco will take over NOK 2 billion in shareholder loans from the City of Oslo.
The transaction has been approved by the businesses concerned and should now even be approved by the Oslo City Council and by the Norwegian Competition Authority earlier than it may be carried out.
Fortum Oslo Varme is currently owned by the City of Oslo and Fortum (50/50) and is Norway’s largest producer of district heating and supplied 36% of district heating generated in Norway in 2021. The firm obtained a comparable EBITDA of NOK 897 million and sold 1.8 TWh of district heating and 0.1 TWh of electrical energy in 2021. Fortum Oslo Varme has roughly 200 employees.
www.hafslundeco.no