Acquisition of Fortum Oslo Varme completed

Hafslund Eco, Infranode and HitecVision are pleased to announce that the acquisition of Fortum Oslo Varme has been completed. The company will change its name to Hafslund Oslo Celsio.

«Hafslund Oslo Celsio will be at the core of the green transition in Oslo», says Martin S. Lundby, Deputy CEO and Executive Vice President for Growth and Investments at Hafslund Eco.

Hafslund Oslo Celsio delivers green degrees in Oslo. The company is Norway’s largest district heating provider and supplies heat to more than 200,000 people. Following the transaction, Hafslund Eco is the majority owner with 60 percent ownership, while Infranode and HitecVision own significant minority positions of 20 percent each.

Important climate solution for Oslo

Through the agreement, financing is secured for the project for carbon capture (CCS) at the Klemetsrud energy recovery plant, which is Oslo’s largest emission point and accounts for around 17 per cent of the city’s total emissions. Realization of CCS will therefore be an important contribution to reaching the City of Oslo’s goal of reducing emissions by 95 percent by 2030.

– The partnership sees CCS as absolutely necessary to be able to drive sustainable energy recovery in a zero-emission society. We have great faith that together we will be able to carry out the CCS project, and thereby reduce CO2 emissions by almost 400,000 tonnes annually in Oslo, says Martin S. Lundby.

– We are very happy to be part of the solution in the funding of the CCS project together with our partners and the City of Oslo. Infranode has significant experience in district heating through other investments and view CCS as an increasingly important climate solution for the industry, says Erik Botnevik, Country Lead Norway at Infranode.

Will invest billions in district cooling

The new owners have agreed a financing plan for the company which entails investments of NOK 10 billion in the coming years. Around NOK 1.4 billion is for the CCS project, while the rest applies to other investments, such as district cooling and a new waste-to-energy line at Klemetsrud.

– More than NOK 3 billion will be invested in district cooling, which will be a large and new area for the company. The common denominator for many of the investments is the decarbonisation of the city, where Hafslund Oslo Celsio will have a prominent role, says Jon Vatnaland, senior partner in HitecVision.

The transaction values Hafslund Oslo Celsio (formerly Fortum Oslo Varme) at about 20 billion NOK on a 100% enterprise value basis. The partnership acquired 50 percent of the shares for about NOK 8 billion and a NOK 2 billion shareholder loan from Fortum. The City of Oslo has further transferred its 50 percent ownership interest in the company to Hafslund Eco as a property contribution, and Hafslund Eco takes over NOK 2 billion at the same time in shareholder loans from Oslo Municipality.