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TrønderEnergi and HitecVision announce a new, Nordic renewables company

TrønderEnergi and HitecVision are joining forces to establish a new renewable energy company with headquarters in Trondheim and activities across the Nordics.

The establishment of the new renewables company, where both parties hold 50 percent ownership, will enable TrønderEnergi and the energy-focused fund manager HitecVision to take a significant position in renewable energy production, electrification, and energy efficiency.

The new company has ambitions to develop activities across the Nordic region, both related to energy production and management. All operations will be managed from the headquarters in Trondheim, and it is expected that the new company will result in an increase in new jobs, as well as other activities and investments, both in Trondheim and other locations.

Seizing the opportunity

"The energy transition is a significant and necessary transition for our future. It also represents great opportunities for new, green businesses. TrønderEnergi and HitecVision responds to the opportunities created by the energy transition by establishing a large, new renewables company. The aim is for the company to become a leading player within renewable energy in the Nordics. Together, we can help drive forward the necessary electrification of society", says Chairman of the Board in TrønderEnergi, Odd Inge Mjøen.

Along the entire value chain

The company, which will get a new name in due course, will in the initial phase have an investment capacity between 15-20 bn. NOK, and probably significantly more in the longer term.

"The new company’s capital base will open up the opportunity to make investments and create significant value across the Nordics. Our ambition is for the company to have activities spanning the entire value chain, from energy production based on solar, hydro, wind, and hydrogen, to energy management, all the way to charging EVs and electric construction machinery and remotely managing the temperature of shop freezers", the CEO of TrønderEnergi, Ståle Gjersvold, says.

And Gjersvold does not doubt that the opportunities already exist:

"How we consume power today, may not be how we consume power in the future. What will continue to be important is that we explore and take advantage of the opportunities that arise along the way."

Largest investment

To establish the new renewables company, TrønderEnergi (owned by 19 municipalities in Trøndelag, Norway, and municipal insurer KLP) has joined forces with the Stavanger-based energy fund HitecVision. HitecVision will invest several billion NOK in the new company.

"We are proud to be a part of this partnership, which is the largest investment we have made in renewable energy to date. For us in HitecVision, it’s exciting to do this together with TrønderEnergi, with their many years of experience and strong competence within renewable energy. We look forward to contributing with our capital and long experience in building successful companies. Together with TrønderEnergi, we will build a strong green growth company, based in Trøndelag", says Jon Vatnaland, senior partner in HitecVision.

Securing the dividend base

Establishing this new company has been planned over a longer period, with significant involvement from TrønderEnergi’s owners throughout the process.

"The owners of TrønderEnergi are eager to contribute to the energy transition, at the same time recognizing that this transition will require a substantial amount of new capital. To deliver on our plans, while also making sure that dividends to the municipal shareholders remain on the same high and stable level as today, access to more financial capital is vital. By joining forces with HitecVision, we will be able to deliver on our plans, while also securing the dividend for our owners. With HitecVision’s extensive knowledge and significant experience from the energy sector, we are thrilled to have them on board", Mjøen emphasizes.

The current TrønderEnergi company will continue to exist alongside the new company and will keep its ownership of 81 percent of the company’s hydropower generation, as well as the ownership in the grid company, Tensio. The company’s remaining operations, including approximately 250 employees, will be transferred to the new company.

The tech capital

Trøndelag has been long recognized for its strong engineering and scientific competence, with its leading scientific institutions and highly skilled commercial workforce. These characteristics will also contribute to the foundation of the new renewables company. The establishment of the new company will create new jobs and more activity across the entire Trøndelag region.

Closing before the summer

The Board of Directors in TrønderEnergi approved the investment in their meeting Tuesday 15th March. HitecVision’s Investment Committee came to the same decision the day before. A final approval will be made by the owners of TrønderEnergi in the general assembly towards the end of June.

About TrønderEnergi

TrønderEnergi is a renewable company owned by 19 municipalities in Trøndelag and KLP. With its headquarters in Trondheim and production site at Berkåk, TrønderEnergi owns and operates hydro-and wind power plants. TrønderEnergi is the leading developer of wind power in the Nordics and has made significant investments in electrification initiatives in the last few years. This includes Ohmia Charging, Ohmia Retail, Ohmia Construction, and Ohmia Energy.