TrønderEnergi and HitecVision are joining forces to establish a new major renewable energy company. The new company will be headquartered in Trondheim, with operations across the Nordic region.
By establishing a new renewable company, where both own 50 percent, the energy group TrønderEnergi and the energy fund HitecVision will make substantial investments in renewable energy production, electrification, and energy efficiency.
The new company has ambitions to have activities throughout the Nordics, both in production and service sectors. Everything will be led from the headquarters in Trondheim, and the initiative will create new jobs, activity, and investment opportunities both within and outside Trøndelag.
Seizing the Opportunity
- The green transition involves a significant and necessary restructuring of society. This transition offers opportunities for industrial, service, and business development within new green industries. TrønderEnergi and HitecVision want to embrace this opportunity by establishing a large new renewable company. The goal is for the company to become one of the leading renewable players in the Nordics. We aim to facilitate the electrification of society, which is absolutely necessary, says Odd Inge Mjøen, Chairman of the Board at TrønderEnergi.
The Entire Value Chain
The company, which has yet to be named, will initially have an investment capacity of between 15 and 20 billion NOK, and probably significantly more in the long term.
- The new company will have such good access to capital that it can invest in and realize major initiatives across the Nordics. Our goal is for the company to have activities throughout the value chain—from when power is generated from renewable energy sources such as solar, water, wind, and hydrogen, through the management and handling of kilowatts, until the energy turns into kilometers on the electric vehicle, temperature in the freezer display, or hours on construction machines and possibly even aircraft and ships, says Ståle Gjersvold, CEO of TrønderEnergi.
He has no doubt that the opportunities exist.
- Perhaps the energy will end up in completely different places and be used for completely different purposes than we envision today. What will be important is to find the possibilities and exploit them going forward, says Gjersvold.
Largest Investment
TrønderEnergi, which is owned by 19 municipalities in Trøndelag and KLP, is establishing the new renewable company together with the Stavanger-based energy fund, HitecVision, which is investing several billion NOK in the company.
- We are proud and pleased to be part of this initiative, which is the largest investment we have made in renewable energy so far. For us, it is incredibly exciting to do this together with TrønderEnergi, which has long experience and high competence in the area, and we look forward to contributing with our capital and extensive experience in business building. Together with TrønderEnergi, we will build a large and green growth company based in Trøndelag, says Jon Vatnaland, Senior Partner at HitecVision.
Securing Dividends
The establishment of the new company is planned following a process that has been underway for some time, with broad owner involvement.
- The owners in TrønderEnergi are passionate about contributing to the green transition. At the same time, it requires access to a lot of capital. If we are to succeed with the major initiatives we now plan, while ensuring dividends to the owner municipalities at a stable high level as today, we must have access to more capital. By establishing a new company together with HitecVision, we will gain such capital. HitecVision also has significant knowledge and experience in the energy sector. We are very pleased to have them on board, says Mjøen.
TrønderEnergi will continue to exist when the new company is established. Ownership of 81 percent of TrønderEnergi's hydropower and ownership of the grid company Tensio will remain in TrønderEnergi. The plan is for all other operations to be transferred to the new company, which will have about 250 employees from the start.
Technology Capital
The core of the new renewable company will be the strong engineering and research expertise that characterizes Trøndelag, with both leading research environments and highly skilled commercial enterprises. The establishment will contribute to more jobs and increased activity in the Trøndelag region.
- In addition to the exciting initiatives that will be included in the new company, it is important for us that it can draw on Norway's leading technology environment led by NTNU and SINTEF, with their long history of commercializing new technology. When this is combined with the solidity and commercial flair we see in TrønderEnergi, we believe Trøndelag has the potential to become a driving force in Norway's green shift, says Vatnaland.
Before Summer
The board of TrønderEnergi approved the new initiative at its meeting on Tuesday, March 15. The investment committee of HitecVision did the same the day before. The final decision on the matter will be made by the owners of TrønderEnergi at the general assembly at the end of June.
About TrønderEnergi
Renewable energy company owned by 19 municipalities in Trøndelag and KLP. Headquarters in Trondheim and production center in Berkåk. Owns and operates hydro and wind power plants. Pioneer in wind power development and is the second-largest wind power player in the Nordics. In recent years, has launched several initiatives within electrification. Among them Ohmia Charging, which is the country's largest operator of electric vehicle charging for housing cooperatives and condominiums, Ohmia Retail, offering energy services to the grocery sector and providing services in over 2500 Norwegian stores, Ohmia Construction, offering solutions for emission-free construction sites, and Ohmia Energy, providing energy solutions to the corporate market.
About HitecVision
HitecVision is a Norwegian investment manager and serial entrepreneur. With 70 billion NOK in assets under management, the company is one of the leading investors in the European energy sector. Over the past 25 years, HitecVision has established or contributed to the development and growth of over 200 companies, and in the coming years, through its portfolio companies, plans to invest over 200 billion NOK. Together with the management, board, and partners of the companies, HitecVision's 60 employees in Stavanger, Oslo, and London contribute to building profitable and sustainable businesses. In recent years, HitecVision has made the many exciting opportunities in the energy transformation their main focus for investments, where close collaboration with established industrial actors is an integrated part of the model.
