Norsk Hydro: Hydro and Lyse to establish hydropower company
Hydro and Lyse plan to merge part of their respective hydropower production to create a stronger joint hydropower company. The agreement secures long-term access to renewable power for Hydro’s industrial operations in Norway.
- Lyse and Hydro will merge their power production assets in the south-west region of Norway through the establishment of a new company, to include Hydro’s hydropower assets Røldal-Suldal Kraft (RSK) and the majority of Lyse’s power production portfolio
- The new company will be called Lyse Kraft DA and have a normal annual power production capacity of 9.5 TWh, of which Hydro will own 25.6 percent and Lyse 74.4 percent
- The agreement is expected to bring synergies of approximately NOK 500 million in net present value
As a consequence of the transaction, the RSK assets will not revert to state ownership at the end of 2022, meaning Hydro can use its share of the power produced by the new company for aluminum production in Norway.
“This is a great day for the future of Norwegian renewable-based industry. The agreement is strategically important for Hydro, as it secures the value of our RSK hydropower assets and contributes to predictability for further industrial development in Norway,” says Hydro President & CEO Hilde Merete Aasheim.
Hydro will become a larger renewable operator
Based on the agreement, Hydro will remain the operator of the RSK assets and assume operatorship for Lyse’s fully owned hydropower plants. Consequently, Hydro will larger power operator and remain the Norway’s third-largest provider of renewable power, with a combined renewables production of 13.6 TWh in a normal year. Hydro’s annual production, based on equity shares, will be 9.4 TWh in a normal year.
Aasheim says the transaction is in line with the company’s strategy to strengthen its position in low-carbon aluminium and grow in the renewable energy sector.
“The agreement supports both objectives, as we secure long-term access to renewable power, and Hydro will become a larger hydropower operator. At the same time, we secure the value that RSK represents for Hydro,” she says.
Lyse will become responsible for the water management and market activities with a portfolio of 9.5 TWh. The CEO of Lyse, Eimund Nygaard, says the agreement creates value in several areas.
“The agreement makes Lyse the third-largest power market entity in Norway and gives us a chance to build an even more competent and robust power management organization in Stavanger,” he says, adding that the operator agreement with Hydro will also give economies of scale, increased professionalism and new development opportunities for the power plants and the employees who will get a new employer.
“The power sector is changing, and we would eventually risk becoming too small to run these plants efficiently on our own. When we now join forces, we can make better use of our combined competences, including in digitalization in a larger system,” says Nygaard.
Long-term industrial access to power
34 employees will be transferred from Lyse to Hydro, and Lyse’s fully owned hydropower plants will become part of Hydro’s operator portfolio.
“We look forward to welcoming new colleagues to the Hydro team, and we look forward to becoming an even larger entity on the southwest region of Norway, where we already have invested in the world’s most climate and energy-efficient aluminum production at the Karmøy Technology Pilot,” says Aasheim.
RSK was established in 1963 to supply power to Hydro’s aluminum plant at Karmøy. In line with the Norwegian rules on license reversion of waterfalls and hydropower installations, private entities can normally only own up to one-third of the shares of a company that owns larger waterfalls. In 2016, the Norwegian government opened for private entities to extract physical power from power companies to ensure predictability for industrial operations.
“The agreement with Lyse builds on this solution, and I would like to give credit to Norwegian authorities for providing this possibility, enabling the agreement with Lyse,” says Aasheim.
Facts about the transaction
- Hydro and Lyse establish Lyse Kraft DA, which will have a normal annual power production capacity of 9.5 TWh
- Hydro transfers the hydropower assets Røldal-Suldal Kraft (RSK) and receives 25.6% ownership in Lyse Kraft DA
- Lyse transfers its total power production portfolio (except shares in Jørpeland Kraft) and receives 74.4% ownership of Lyse Kraft DA
- Hydro remains operator of the RSK assets and resumes operator responsibility for Lyse’s fully owned hydropower plants. Consequently, Hydro will increase its total operator responsibility of Norwegian hydropower and wind power to 13.6 TWh in a normal year
- Lyse becomes Norway’s third-largest power market entity, with a market portfolio of 9.5 TWh in a normal year
- 34 employees are transferred from Lyse Produksjon AS to Hydro Energi AS as a result of Hydro becoming the operator
- The agreement is expected to bring savings totalling a present value of approximately NOK 500 million in Lyse Kraft DA. These will be realized through economies of scale and more efficient operations, as well as new ways of working through digitalization and collaborative solutions in daily operations and investment projects
- Total savings and synergies for Hydro are expected to amount to a yearly EBITDA effect of approximately NOK 40-50 million after a few years
- The transaction is expected to close in the fourth quarter of 2020, pending approval by the Norwegian Competition Authorities
Hydro is a fully integrated aluminium company with 35,000 employees in 40 countries on all continents, combining local expertise, worldwide reach and unmatched capabilities in R&D.
In addition to production of primary aluminium, rolled and extruded products and recycling, Hydro also extracts bauxite, refines alumina and generates energy to be the only 360° company of the global aluminium industry. Hydro is present within all market segments for aluminium, with sales and trading activities throughout the value chain serving more than 30,000 customers.
Based in Norway and rooted in more than a century of experience in renewable energy, technology and innovation, Hydro is committed to strengthening the viability of its customers and communities, shaping a sustainable future through innovative aluminium solutions.
Lyse is a Norwegian industrial group operating within the business areas of energy, telecommunications and power grid. Lyse is a substantial national operator within renewable energy and a national leader within fibre-optic broadband business.
Lyse has built the country’s most varied and complete infrastructure for electricity, bio- and natural gas, district heating and fibre-optic broadband. A high degree of availability and distribution stability is a priority.
The company’s shareholders are 14 municipalities from Southern Rogaland. The shareholders have a long-term industrial perspective on their investment and expect that the company has a positive impact on its local community with a strategic focus for the region and satisfactory profitability.
Head of Investor Relations,
Senior vice president, Media Relations
This information is subject to the disclosure requirements pursuant to Section 5-12 the Norwegian Securities Trading Act
One Liberty Plaza - 165 Broadway
NY 10006 New York
GlobeNewswire is one of the world's largest newswire distribution networks, specializing in the delivery of corporate press releases financial disclosures and multimedia content to the media, investment community, individual investors and the general public.
Subscribe to releases from GlobeNewswire
Subscribe to all the latest releases from GlobeNewswire by registering your e-mail address below. You can unsubscribe at any time.
Latest releases from GlobeNewswire
RomReal: Third Quarter (Q3) 2020 Results and Investor Presentation26.11.2020 23:00:00 CET | Press release
RomReal hereby announces the results of the third quarter of 2020 via the report and investor presentation attached to this message. A webcast presentation will also be uploaded on our website www.romreal.com by 9am CET tomorrow 27 November 2020. For further information please contact: Harris Palaondas Investor Relations RomReal email@example.com This information is subject to the disclosure requirements pursuant to Section 5-12 the Norwegian Securities Trading Act Attachments RomReal - Q3 2020 PresentationRomReal - Q3 2020 Report
PRESS RELEASE: NACON: GREEDFALL EXTEND ITS JOURNEY WITH A NEW EXPANSION AND A RELEASE ON PLAYSTATION 5 AND XBOX SERIES S/X26.11.2020 18:00:00 CET | Press release
GREEDFALL EXTEND ITS JOURNEY WITH A NEW EXPANSION AND A RELEASE ON PLAYSTATION 5 AND XBOX SERIES S/X Lesquin (France), November 26, 2020 – Following the success of GreedFall, which sold more than a million copies in less than a year, and considering the enthusiasm of all those who travelled the rich lands of Teer Fradee, NACON and Focus Home Interactive are happy to announce a new partnership aiming to expand the game with new content, as well as a release on PlayStation 5 and Xbox Series S/X. The two companies have thus reached an agreement, in which Focus Home Interactive will be in charge of the publishing of the upcoming additional content and expansion, as well as the PlayStation 5 and Xbox Series S/X versions of GreedFall. The GreedFall brand is now integrated as part of the NACON portfolio. Released September 10, 2019, GreedFall is an RPG experience in which you explore uncharted lands seeping with magic, filled with secrets and fantastic creatures. With diplomacy, deception and
KBC Group: KBC finalises acquisition of OTP Banka Slovensko (Slovakia)26.11.2020 18:00:00 CET | Press release
Joint Press Release Outside trading hours – Regulated information* Brussels, Budapest, Bratislava – 26 November 2020 – 6 p.m. CET KBC finalises acquisition of OTP Banka Slovensko (Slovakia) Belgium’s KBC Group and OTP Bank, the Hungarian parent company of OTP Banka Slovensko (Slovakia), today closed the agreement announced on 17 February 2020 for KBC Bank NV to acquire ownership of 99.44% of the shares in OTP Banka Slovensko, a.s. (OTP Banka Slovensko). The remaining shares are held by a number of private individuals. The transaction received regulatory approval from the National Bank of Slovakia (NBS), the National Bank of Belgium (NBB), the European Central Bank (ECB) and the Antimonopoly Office of the Slovak Republic. It has only a limited impact (-0.2%) on KBC’s solid capital position, keeping KBC’s excellent 3Q2020 CET1 ratio of 16.6% (Basel III fully loaded, Danish compromise) well above regulatory minimum capital requirements. As a result of the transaction, KBC Bank NV is now t
IMCD to acquire the personal care business of Turkish distributor Ejder Kimya26.11.2020 17:45:00 CET | Press release
ROTTERDAM, The Netherlands (26 November 2020) – IMCD N.V. (“IMCD”), a leading distributor of speciality chemicals and ingredients, today announces that it has successfully signed an agreement to acquire the personal care business of Ejder Kimya İlaç Danışmanlık Sanayi ve Ticaret A.Ş. (“Ejder Kimya”). Ejder Kimya was founded in 1999 and is a Turkish chemicals distributor of raw materials for personal care and pharmaceuticals products and food additives. It has a strong and solid position in the personal care market in Turkey. Ejder Kimya’s personal care business generated a revenue of € 4.7 million in 2019. Aylin Zakuto, Managing Director IMCD Turkey, comments: “This acquisition is a solid step to strengthen IMCD Turkey’s footprint in the personal care market in line with IMCD’s global growth strategy. Adding Ejder Kimya’s personal care market expertise and extensive portfolio to IMCD will expand our offered solutions to customers and accelerate the growth of our suppliers in the person
Information regarding the early redemption of the 2021 bonds26.11.2020 17:00:00 CET | Press release
Press release: Information to Bondholders 26 November 2020 Information regarding the early redemption of the 2021 bonds NOT FOR DISTRIBUTION IN OR INTO OR TO ANY PERSON LOCATED OR RESIDENT IN THE UNITED STATES, ITS TERRITORIES AND POSSESSIONS (INCLUDING PUERTO RICO, THE U.S. VIRGIN ISLANDS, GUAM, AMERICAN SAMOA, WAKE ISLAND AND THE NORTHERN MARIANA ISLANDS, ANY STATE OF THE UNITED STATES AND THE DISTRICT OF COLUMBIA) OR TO ANY U.S. PERSON (AS DEFINED IN REGULATION S OF THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED) OR IN ANY JURISDICTION WHERE IT IS UNLAWFUL TO RELEASE, PUBLISH OR DISTRIBUTE THIS PRESS RELEASE. THE DISTRIBUTION OF THIS PRESS RELEASE IN CERTAIN JURISDICTIONS (IN PARTICULAR, THE UNITED STATES AND THE UNITED KINGDOM) MAY BE RESTRICTED BY LAW. On 29 October 2020, Cembrit Group A/S exercised its right to make a voluntary early redemption of its outstanding senior secured callable bonds maturing on 20 March 2021 with ISIN SE0009722887 and outstanding amount of EUR 115
Saniona AB’s Nomination Committee for the Annual General Meeting 202126.11.2020 16:00:00 CET | Press release
PRESS RELEASE November 26, 2020 Saniona (OMX: SANION), a clinical stage biopharmaceutical company focused on rare diseases, today announced the composition of the Nomination Committee for the Annual General Meeting 2021. Pursuant to the instruction and charter for the Nomination Committee adopted by the general meeting, the Nomination Committee shall be comprised of three members, which shall be the Chairman of the Board of Directors and two members appointed by the two largest shareholders as of last September. On September 30, 2020, the two largest shareholders, which desired to appoint a representative to the Nomination Committee, were Jørgen Drejer and New Leaf Venture Partners. Each such shareholder has appointed a representative, as shown below, who together with the Chairman of the Board of Directors will form Saniona AB’s Nomination Committee. The Nomination Committee’s members are: Søren Skjærbæk, Partner at Ursus law firm, Vejle, Denmark, appointed by Jørgen DrejerJohn Haurum