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Hydro Rein and Commerz Real to develop 362 MW solar projects in Denmark

Hydro Rein and Commerz Real have entered into an agreement on forming a joint venture to acquire and develop two early phase solar projects in Jylland, Denmark. Construction is expected to commence in 2024, with production starting in early 2026. The ambition is to grow the portfolio to 1 GW.

Hydro REIN and Commerz Real to develop 362 MW solar projects in Denmark
Illustration: GreenGo

The joint venture will be owned 50/50 by Commerz Real and Hydro Rein. The seller is the Danish developer GreenGo Energy, who will continue to develop the projects until the start of operations. The projects have an estimated peak capacity of 170 MW and 192 MW, respectively, and a total annual production of 412 GWh.

"We are proud to announce our very first investment in Denmark and Hydro Rein’s first solar investment in the Nordics, together with a solid partner, Commerz Real. The investment will diversify our Nordic portfolio in terms of technology and production, and we see great potential in combining wind and solar to help decarbonize major industrial players. Backed by strong governmental ambitions, we are looking forward to explore more opportunities in Denmark,” says Olivier Girardot, Head of Hydro Rein.

“The Danish investment market for photovoltaic offers the potential for growth and diversification for our institutional investors in particular. With Hydro Rein and GreenGo Energy, we also have experienced partners firmly rooted in the Scandinavian market by our side,” says Barkha Mehmedagic, Global Head of Institutional Sales and Group Treasury at Commerz Real.

The Danish solar market is growing rapidly, and Denmark has an ambition to source 100 percent of its electricity from renewables by 2027. Total wind and solar production will likely exceed 20 TWh in 2022. It is expected that solar power capacity will reach about 8 GW by 2030, although it is still at a marginal level now.

"We are honored to partner with two profound and complementary institutions in the renewable energy industry. This is our first GW scale partnership agreement for our Mermaid portfolio in Denmark. It is a big milestone to helping us accelerate the energy transformation with significant impact well before 2030,” says Karsten Nielsen, CEO of GreenGo Energy.

Hydro Rein and Commerz Real have a common ambition to grow the portfolio up to 1 GW. By forming a joint venture, the partners will be able to leverage their complementary capabilities with extensive experience from renewable investments and a strong industrial presence in the Nordic power market.

About Hydro Rein

Hydro Rein is a leading provider of renewable energy solutions to industrials, fully owned by the global renewable energy and aluminium company Hydro. Hydro Rein has a diversified portfolio of 16 projects under development in core markets in the Nordics and Brazil. The company has an ambition of 3GW in construction or operation (gross) by 2026, leveraging on a unique customer offering and Hydro’s century-long track record in building industries that matter.

About Commerz Real AG

Commerz Real is the asset manager for real asset investments of German Commerzbank Group and has over 50 years of international market experience. More than 800 employees manage assets of around 34 billion euros at the Wiesbaden headquarters and 17 other locations and branches in Germany and abroad. The company combines comprehensive know how in asset management and a broad based structuring expertise to deliver its signature range of services of fund products focused on tangibles and bespoke financing solutions. The fund spectrum includes the open ended real estate fund Hausinvest, Germany’s first retail impact fund for real assets Klimavest, institutional investment products as well as entrepreneurial participations in real estate, aircraft, regenerative energy and ships. In its role as leasing company of Commerzbank Group, Commerz Real offers tailored equipment leasing concepts.

About GreenGo Energy

GreenGo Energy was founded in 2011 with the vision to accelerate conversion to renewable energy generation, by an innovative and scalable business model. GreenGo Energy’s 360° full service platform includes origination, development, offtake, engineering, procurement, construction management, O&M and asset management services, fully tailored and bespoke to the client’s needs and investment profile.

GreenGo Energy has more than 6.5GWp of solar and storage projects in various stages of development and construction in selected U.S. states and Northern Europe, of which more than 1.7GWp has achieved full cycle financing through partnership agreements with tier 1 investors in the renewable space.


Line Haugetraa

Line Haugetraa

Head of Investor Relations

Maria Melfald Tveten .jpg

Maria Melfald Tveten

Head of Communication & Public Affairs, Hydro Energy

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