Statkraft and Norfund have announced plans to create a leading international hydropower company by restructuring and prolonging their existing joint venture operation, SN Power.
The two Norwegian organizations have cooperated for over ten years in the renewable energy field and say that they intend to grow the business by taking advantage of economic growth in emerging economies.
SN Power is 60 per cent owned by Statkraft and 40 per cent by Norfund, a Norwegian government-owned investment fund. The two organizations plan to focus investments on projects in Southeast Asia, Central America and Africa, and eventually invite new investors as stakeholders.
In addition, a separate project and construction unit will be established in Statkraft International Hydropower, which will be the preferred supplier of project execution services to all international hydropower projects within Statkraft and SN Power.
"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.
Under the new agreement between Statkraft and Norfund, SN Power's existing portfolio in South Asia and South America will be integrated with Statkraft's other assets. Statkraft's share of this part of the portfolio will increase from 60 to 67 per cent, while Norfund's share will decrease from 40 to 33 per cent. Over time, Norfund's intention is to further reduce its stake.
In addition, a new company will be created with a geographical focus on Southeast Asia, Central America and Africa, with projects executed through a subsidiary known as Agua Imara. Statkraft and Norfund intend to reduce their holdings in the new company over time and bring new investors on board.
SN Power has invested more than $1 billion in the acquisition and development of hydropower projects in Asia, Latin America and Africa, and also owns one wind farm in Chile. It currently has projects under construction or development in Peru, Brazil, Nepal, India, Vietnam and the Philippines.
Sian Crampsie
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