Investment manager Downing LLP is strengthening its sustainable investing focus with the c.£3 million acquisition of Norwegian hydropower plant Kvævebekken Kraftverk AS (“Kvævebekken”) with an annual average production c.5 GWh.
The acquisition from Fossberg Kraft AS of 100% of the shares in Kvævebekken Kraftverk AS, which is located in the Sirdal region of South Norway, was made through the renewable energy and infrastructure arm of the Downing Estate Planning Service (DEPS).
The deal is the second this year in the hydropower sector made by DEPS. It follows the acquisition of Lauvstad Kraftverk AS (“Lauvstad") in January.
Following the acquisitions of Kvævebekken and Lauvstad, the renewable energy and infrastructure arm of DEPS now owns seven hydropower plants in the southern part of Norway with a forecast aggregate annual average generation of c.41 GWh.
Henrik Dahlström, Investment Director at Downing, said: “The Kvævebekken hydropower plant acquisition is another excellent opportunity which enables us to further expand our investment allocations in hydropower and the Nordic region.
“Financing newbuild hydropower in the Nordic region is an important part of our strategy as we look to continuously diversify our portfolio by both geography and technology. We look forward to continuing our excellent relationship with Fossberg Kraft AS to further expand our Norwegian hydropower portfolio.
“As a certified B Corp, we are committed to responsible investing and delivering on the strategy. We look forward to adding further attractive projects to our portfolio in due course.”