Statkraft and Norfund have signed a final agreement to restructure and prolong their cooperation within renewable energy, with a view to exploiting potential hydropower development.

For more than 10 years Statkraft and Norfund have cooperated in developing renewable energy globally through SN Power. This agreement takes the cooperation to the next phase. The goal is to develop a leading international hydropower cluster, contributing to the development of a low-carbon society through profitable investments.

The main elements of the new structure and cooperation are:

• SN Power’s existing portfolio in South Asia and South America is united and operationally integrated with Statkraft’s other assets. Statkraft’s share of this part of the portfolio will increase from 60 to 67%, while Norfund’s share decreases from 40 to 33%. Over time, Norfund’s intention is to further reduce its stake.
• A new company called SN Power will be created, with geographical focus on Southeast Asia, Africa and Central America. Initially, Statkraft and SN Power will own SN Power 50% each. The business in Africa and Central America will be performed through the subsidiary Agua Imara, where BKK and TrønderEnergi are minority shareholders. Statkraft and Norfund’s intention is to reduce their shareholdings in SN Power to approximately 40% each, and during a 1-2 years period invite financial investors into the company. In that context, BKK and TrønderEnergi will be invited into SN Power as shareholders.
• A separate project and construction unit will be established in Statkraft International Hydropower, which will be a preferred supplier of project execution services to all international hydropower projects within Statkraft and SN Power.

The agreement terminates Norfund’s options to sell its shares in SN Power to Statkraft in 2014 and 2015. These options are replaced by a revised put/call option program for the two companies covering the period 2017-2023.

"Statkraft’s ambition is to strengthen its position as a leading international company within hydropower. The agreement with Norfund will further strengthen our industrial role and utilise the full hydropower competence within the Statkraft Group even better", said Christian Rynning-Tønnesen, President and CEO of Statkraft.

"This agreement confirms the long term strategic cooperation between Norfund and Statkraft, BKK and TrønderEnergi to harness and develop hydropower resources in developing countries. The new platform for cooperation will scale up our joint efforts benefiting the global fight against climate change as well as the fight against poverty," added Kjell Roland, Managing Director of Norfund.