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Hydro REIN and Eolus sign agreement to acquire wind project

Hydro’s dedicated company for renewables development, Hydro REIN, has together with Swedish wind power developer Eolus agreed to acquire the licensed wind power project Stor-Skälsjön from Enercon GmbH.

windmills
Illustration photo

“This project is an important step in developing Hydro REIN’s portfolio in the Nordics and toward our ambition to invest in 1 GW of projects by the end of 2021. We look forward to developing this project jointly with Eolus, a partner with a strong track record in wind project development in Sweden,” says head of Hydro REIN, Olivier Girardot.

The Stor-Skälsjön project is a ready-to-be-built wind power plant in Sundsvall and Timrå municipalities within the SE2 price area in Sweden. The project totals up to 260 MW and will be covered by a 12-year ‘as produced’ power purchase agreement (PPA) with Hydro Energy for 70 percent of the volumes. The PPA will be included in Hydro Energy’s total market portfolio, and Hydro’s Energy Markets team will be responsible for balancing and nomination services for all volumes from the plant.

Hydro REIN and Eolus will own 49 and 51 percent, respectively, of the Stor-Skälsjön project. The partners have agreed to divest the majority of the project shares, and a sales process will be initiated during the summer. Supplier contracts will be entered during autumn this year and commissioning of the plant is expected to commence during the second half of 2023.  

“We are very pleased to be able to form this partnership with Hydro REIN and look forward to the cooperation in constructing Stor-Skälsjön. With the PPA and the ownership by Hydro, we can offer an attractive investment opportunity in the Swedish renewable electricity sector,” says Marcus Landelin, Chief Operating Officer at Eolus.

The Stor-Skälsjön project holds necessary licenses to build. Grid connection will be completed during summer 2021, and construction of internal roads and other infrastructure has already been initiated by Enercon.

Hydro REIN was established as part of Hydro’s strategy to grow in renewables. As communicated previously, an external capital raise for Hydro REIN, including a potential listing, is under evaluation.

Line Haugetraa

Line Haugetraa

Head of Investor Relations

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