Hafslund Eco, Infranode and HitecVision has reached the acquisition of Fortum Oslo Varme. The company will change its name to Hafslund Oslo Celsio. – Hafslund Oslo Celsio will be at the center of the green transition in Oslo, says Martin S. Lundby, Deputy CEO and Executive Vice President for Growth and Investments at Hafslund Eco.

Hafslund Oslo Celsio delivers green degrees in Oslo. The company is Norway’s largest district heating player and provides heat to more than 200,000 people throughout Oslo. Following the transaction, Hafslund Eco is the majority owner with 60 percent ownership, while Infranode and HitecVision owns significant minority positions of 20 percent each.

Important climate solution for Oslo

Through agreements, the financing is secured for the project for carbon capture (CCS) at Klemetsrud. The energy recovery plant is Oslo’s largest emission point and accounts for around 17 percent of the city’s total emissions. Realization of CCS will therefore be an important contribution to Oslo Municipality achieving the goal of reducing emissions by 95 percent by 2030.

– The partnership sees CCS as absolutely necessary to be able to drive sustainable energy recovery in a zero-emission society. We believe that together we will be able to implement the CCS project, and thereby reduce CO2 emissions by almost 400,000 tonnes annually in Oslo, says Martin S. Lundby.

– We are pleased to have contributed to the financing of the CCS project together with our partners and the City of Oslo. Infranode has significant experience in district heating through other investments, and sees CCS as an increasingly important climate solution for the industry, says Erik Botnevik, Norway manager in Infranode

Will invest billions in district cooling

The new owners have made a financing plan for the company as investments of 10 billion in the coming years. Of this, about 1.4 billion is for the CCS project, while the rest applies to other initiatives, such as district cooling and a new line for energy recovery at Klemetsrud.

– More than three billion kroner will be invested in district cooling, which will be a large and new area for the company. The key word for many of the investments is the decarbonisation of the city, and here Hafslund Oslo Celsio will have a prominent role, says Jon Vatnaland, senior partner i HitecVision.

The transaction prices Hafslund Oslo Celsio (formerly Fortum Oslo Varme) at about 20 billion. DKK based on a gross company value on a 100 percent basis. The partnership buys 50 percent of the stock for about $ 8 billion. ISK and redeems 2 billion. NOK in shareholder loans to Fortum. Oslo Municipality transfers its 50 percent ownership interest in the company to Hafslund Eco as one thing deposit, and Hafslund Eco will simultaneously take over 2 billion. NOK in shareholder loans from Oslo Municipality.

For more information:
Martin S. Lundby, Deputy CEO and Executive Vice President, Growth and Investments at Hafslund Eco, [email protected]tel. +47 416 14 448

Per Storm-Mathisen, Head of Communications at Hafslund Eco, [email protected]tel. +47 982 55 406

Erik Botnevik, Norway Manager in Infranode,erik.botnevik (at) infranode.notel. +47 91 55 50 58

Jon Vatnaland, Senior Partner i HitecVision, [email protected]tel. +47 90 50 00 16

About Hafslund Oslo Celsio:
Hafslund Oslo Celsio (formerly Fortum Oslo Varme) was before the transaction owned by Oslo Municipality and Fortum (50/50). Hafslund Oslo Celsio is Norway’s largest district heating player, supplying 36% of the district heating in Norway in 2021. The company achieved an EBITDA of DKK 897 million. kr and sold 1.8 TWh district heating and 0.1 TWh electricity in 2021. Hafslund Oslo Celsio has about 200 employees.

About Hafslund Eco:
Hafslund Eco is Norway’s second largest hydropower producer. The group owns wholly or partly 80 hydropower plants in Innlandet, Viken and Vestlandand operates a production of 21 TWh hydropower. Hafslund Eco owns 50 percent of Eidsiva Energi, and thus half of Elvia, Norway’s largest grid company with about 950,000 customers, in addition to companies in broadband and district heating. Offshore wind is one of Hafslund Eco’s strategic focus areas and the group has ambitions to develop both bottom-fixed and floating offshore wind in Norway. Through the business area, Ny Energi, the group with innovation and business development to accelerate the electrification of Norway. Hafslund Eco has about 450 employees and is whole of Oslo Municipality.

About HitecVision:
HitecVision is a Norwegian asset manager and series contractor. With 70 billion kroner in total assets, the company is one of them leading investors in the European energy sector. The last 25 years have HitecVision established or contributed to the development and growth of more than 200 companies, and will in the next few years, through its portfolio companies, invest more than DKK 200 billion. Together with the company’s management, board and partners contribute HitecVisions 60 employees in Stavanger, Oslo and London to build profitable and sustainable companies. HitecVision has in recent years made the many exciting opportunities in energy transformation the main focus of its investments, of which close collaboration with established industrial players is an integral part of models.

About Infranode:
Infranode is a long-term infrastructure investor with a special focus on the Nordic countries. Infranode invests in energy, energy distribution, renewable energy, digital infrastructure, transport and social infrastructure. Infranode has offices in Stockholm, Helsinki, Copenhagen and Oslo, and a strength team in infrastructure investments with extensive local and international experience. Infranode has about 1.8 billion euros in komtert capital from long-term, institutional investors, including some of the most recognized pension funds in the Nordic region. Among the investors is Storebrand, Folksamthe Swedish municipal pension fund KPA Pension and the Finnish public sector pension fund KEVA. In this Infranode investment, Storebrand is strategicco-investment partner and the largest single investor.