Macquarie : Asset Management completes investment in Hydro Rein

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Macquarie Asset Management completes investment in Hydro Rein

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Oslo, 24 June 2024

Macquarie Asset Management (Macquarie) has today finalised its investment in a 49.9 per cent stake in Hydro Rein from Hydro for approximately $US332 million.

Hydro Rein is a leading provider of renewable energy to the industrial sector. Macquarie's investment, which was announced in October 2023, will be held by the Macquarie Green Energy and Climate Opportunities Fund and help finance Hydro Rein's pipeline of projects in construction and development.

Hydro Rein has 8.4 GW gross capacity in development across its core markets in the Nordics and Brazil. The business has developed strong industrial partnerships since launching in 2021, with long-term power purchase agreements totalling 5.3 TWh annually. This includes offtake agreements with Hydro's Alunorte alumina refinery, Albras primary aluminium plant and Paragominas bauxite mine. Hydro Rein also co-developed a wind project to power the Norwegian operations of telecommunications company Telenor.

Macquarie's investment will support the continued expansion of renewable energy solutions alongside Hydro's ambition to accelerate the growth of low-carbon aluminium production and decarbonise hard-to-abate industries.

Mark Dooley, Global Head of Green Investments at Macquarie Asset Management, said: "Decarbonising vital industrial materials like aluminium is a key challenge of the energy transition. Hydro Rein is helping to pioneer low carbon aluminium smelting and is playing a leading role in enabling industries like the automotive sector to reach its decarbonisation targets. I look forward to joining forces once again with Hydro, combining our capabilities to unlock a greener future for industry and the communities and markets served by industry."

Eivind Kallevik, President and CEO of Hydro, commented: "We are excited to conclude the transaction, marking the next chapter in our renewable energy partnership with Macquarie Asset Management. Hydro Rein is well equipped to execute on its ambitious growth agenda, with a strong project pipeline going forward. Industrial decarbonization begins with renewable energy and Hydro Rein will be instrumental in supporting Hydro as well as other industries with the energy we need to reduce our CO₂ emissions."

This investment marks a new milestone for Macquarie's relationship with Hydro. The two companies have collaborated on several projects since 2017, including power purchase agreements to help the aluminium company decarbonise its operations. Macquarie and Hydro have partnered in the development of 1.3 GW of renewable energy capacity,¹ including several wind projects across the Nordics and a 456 MW onshore wind farm in Brazil.

About Hydro Rein

Hydro Rein is a leading provider of renewable energy solutions for industry. Created in 2021 as part of the sustainability strategy of Hydro, an integrated aluminium and energy company, Hydro Rein's strategy is focused on the industrial need to decarbonize, where tailormade solutions are needed to overcome the obstacles of the energy transition.

Hydro Rein has a diversified portfolio with more than 60 renewable energy and energy efficiency projects under development in key markets in the Nordic countries and Brazil. After three years of growth in renewable energy, Hydro Rein has a gross capacity of 8.4 GW in its portfolio and long-term contracts signed for a production of 5.3 TWh per year.

1. Calculation based on combination of megawatts developed or being developed from joint projects: Markbygden Wind Farm (650 MW), Overturingen Wind Park (235 MW) and Ventos de Sao Zacarias (456 MW).

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