Downing LLP is purchasing a portfolio of five operational hydropower plants in south Norway from Fossberg Kraft AS/Fossberg Kraft Produksjon AS (Fossberg), with Fossberg set to become Downing’s partner both for development of new power plants and operations and maintenance in Norway.
Downing LLP exchanged contracts on behalf of Downing Estate Planning Service (DEPS). The hydropower assets will now be owned by Bagnall Energy Limited, one of the two Inheritance Tax (IHT) companies within DEPS.
The portfolio comprises five hydropower plants near the city of Bergen. Three of the power plants are in Bjørnafjorden and the two other facilities are located in Odda and Sauda respectively. The average annual production of the portfolio is 21.8GWh.
“We are delighted to announce the acquisition of this hydropower portfolio from Fossberg, who are leaders in the development of small scale hydropower plants in Norway,” Henrik Dahlström, Investment Director at Downing LLP, said. “As the Norwegian power market continues to increase its export of renewable energy to the wider European market, this is an important and strategic move for Downing as we contribute to the growth of renewable energy generation in Norway and the fight against climate change. We look forward to a long-term relationship with Fossberg both in developing new power plants and as operational and maintenance partners.”
“We are very pleased to have entered into a partnership with Downing, starting with the sale of five of our power plants,” added Tom Jensen, General Manager at Fossberg Kraft. “We look forward to now developing further hydro power plants for Downing to acquire on behalf of its funds. In doing so, we will continue to grow a strong development business and develop the department for operation and maintenance that will we believe will play a key role in the company’s future success. Our thanks also to our advisors on the project - Fearnley Securities AS who acted as our financial advisor and Schjødt as legal advisor.”
Earlier this month, another Downing company announced details of a new hydropower investment. Downing Renewables & Infrastructure Trust plc (DORE) said it is to acquire a portfolio of eight operational hydropower plants in central and southern Sweden from Fortum for €64.5 million.