Downing Acquires Portfolio of Five Norwegian Operational Hydropower Plants
14 January 2021: Downing LLP (“Downing”) is pleased to announce that it has exchanged contracts to acquire a portfolio of five operational hydropower plants (HPPs) in South Norway on behalf of Downing Estate Planning Service (“DEPS”).
The assets will now be owned by Bagnall Energy Limited one of the two Inheritance Tax (“IHT”) companies within DEPS. The portfolio is being acquired from Fossberg Kraft AS/Fossberg Kraft Produksjon AS (“Fossberg”) who will become Downing’s partner both for development of new power plants, and operations and maintenance in Norway.
The portfolio comprises five hydropower plants near the city of Bergen. Three of the power plants are in Bjørnafjorden, a small town an hour south of Bergen, with their close proximity allowing for streamlined operations. The two other facilities are located in Odda and Sauda respectively. The average annual production of the portfolio is 21.8 GWh.
This most recent acquisition illustrates Downing’s focus on the core renewables space in the Nordic region.
Henrik Dahlström, Investment Director at Downing LLP, said:
We are delighted to announce the acquisition of this hydropower portfolio from Fossberg, who are leaders in the development of small scale HPPs in Norway. 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.
Tom Jensen, General Manager at Fossberg Kraft, adds:
We are very pleased to have entered into a partnership with Downing, starting with the sale of five of our power plants. 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.