Hydro Rein, Hydro's venture into renewable growth, has recently finalised an agreement with the Swedish renewable energy developer IOWN Energy (IOWN) to acquire an 80 per cent stake in a substantial 2.4 GW portfolio of wind power projects. These projects are being developed across Sweden and Norway, spanning electricity price areas SE2, SE3, SE4, and NO2.
About the agreement with IOWN
The portfolio comprises 23 projects in Sweden and two in Norway, with many land lease agreements already secured. As part of the agreement, Hydro Rein and IOWN will embark on a long-term partnership to co-develop these projects, with an ownership split of 80 per cent for Hydro Rein and 20 per cent for IOWN.
At this stage, the projects are in the early phases of development, and both companies plan to collaborate closely with host municipalities, landowners, and local communities to move the projects forward. The shared ambition between Hydro Rein and IOWN is to make initial investments before 2030, setting a promising course for sustainable energy growth in the region.
"We are pleased to join forces with IOWN and secure a large portfolio of wind power projects in Sweden and Norway. The transaction aligns with Hydro Rein's focus on early-phase projects in our core markets. IOWN has a competent team with extensive experience from wind power development in the Nordics, which will complement Hydro Rein well," explained Olivier Girardot, Head of Hydro Rein.
Moving towards decarbonisation
With a potential annual production of up to 7.6 TWh, these projects represent a substantial contribution towards decarbonising the industry and enhancing the power balance in Sweden and Norway. This significant capacity underscores the commitment of Hydro Rein and IOWN Energy to advancing renewable energy solutions for a more sustainable future in the region.
"The industry needs more power. With this project portfolio, Hydro Rein will contribute to the electrification of existing industry as well as the development of new green industries, both in Sweden and Norway. We are strengthening our role as a leading supplier of renewable energy solutions for more sustainable industries," added Girardot.
Both Sweden and Norway have made clear their commitment to embracing new, renewable energy sources. Sweden aims for a complete transition to 100 per cent fossil-free electricity by 2040, while Norway's Energy Commission has proposed a target of adding 40 TWh of new power production by 2030.
Hydro Rein is actively developing 1,050 MW of renewable energy projects within Sweden. One notable project, Stor-Skälsjön, with a capacity of 260 MW, is being jointly developed by Hydro Rein and Eolus and is on the brink of completion, ready to transition into the operational phase. Meanwhile, Hydro Rein has amassed a renewable energy portfolio totalling approximately 700 MW in Norway.
"We are convinced that the extensive electrification of society ahead of us requires strong collaborations between various actors contributing their expertise to the projects. Hydro Rein has an ownership perspective that we value and share. Hydro Rein's strong connection to power intensive industries, combined with IOWN's expertise in land based, wind power project development, is an alliance for the future of renewable power production. We at IOWN are very proud and pleased to collaborate with Hydro Rein," added Richard Larsson, Head of IOWN in the Nordics.
On the other hand, IOWN Energy operates in the Nordics and the U.S., specialising in project development, construction, and management of renewable energy ventures. Their expertise encompasses a wide array of renewable energy sources, including large-scale wind power projects, land-based solar power installations, and energy storage solutions utilising batteries.
Hydro Rein and IOWN are steadfast in their dedication to sustainable development practices, prioritising minimising their impact on nature and striving for zero net loss of vulnerable ecosystems. This commitment is reflected in their meticulous project planning, thorough consideration of biodiversity, and thoughtful integration into the landscape. Where impacts are inevitable, both companies are dedicated to implementing restoration efforts to mitigate any adverse effects.
Central to their approach is maintaining open and productive dialogue with municipalities and local communities at every stage of the development process. By fostering strong relationships and actively engaging with these stakeholders, Hydro Rein and IOWN aim to establish themselves as long-term stewards of the projects, ensuring sustainable benefits for the environment and the communities involved.
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