Locus Energy AB has signed an agreement to acquire a hydropower portfolio of a total of 26 assets with a total potential production of more than 250 GWh in Norway from a fund managed by Impax Asset Management and Blåfall AS. The portfolio includes operational power stations as well as ongoing construction and development projects in electricity areas NO2, NO3, NO4 and NO5. Through the acquisition, Locus Energy becomes a major owner of small-scale hydropower in the Nordic region. The buyer’s financing comes from Nordic institutional investors via SEB Nordic Energy fund.

Through the acquisition of Blåfall Utvikling, a platform is created for Locus Energy’s continued expansion in Norway both through continued project investments and through additional acquisitions..Blåfall Utvikling is also an important step in Locus Energy’s goal to create a leading pan-Nordic presence in small-scale hydropower and thereby contribute to creating stronger, more sustainable, and more robust local energy systems. In the past, Locus Energy has built a portfolio of small-scale hydropower in Sweden with a base in electricity areas SE3 and SE4

In order to exploit the full potential of small-scale hydropower in Norway, Sweden and Finland, a changed competence in ownership combined with progressiveness in development is required. It is with great confidence that we now take on the challenge of growing further in Norway and the Nordics to become the best active owner of small-scale energy assets.

Niklas Sörensen, CEO Locus Energy

As the Nordic region’s largest asset manager, we see a strong interest among our institutional investors in local sustainable energy infrastructure. It is with pleasure that I note that in our fund SEB Nordic Energy we are now significantly increasing the exposure to small-scale hydropower, which together with other small-scale asset types creates robust local energy systems and enables a sustainable transition.

Richard Gavel, Portfolio Manager, SEB Nordic Energy

Impax is dedicated to investing in the transition to a more sustainable economy. Taking late-stage development risk, we partner with local developers and leverage our in-house technical and financial expertise to create value from greenfield assets. Together with our local partner Blåfall, we have developed significant expertise in the Norwegian small-scale hydro market over the last six years which we expect to continue to leverage through future potential investments in the region and technology. This sale is a testament to our ability to form strong local partnerships and build high-quality, strategic platforms that are highly attractive to long-term asset owners.

Babaola Omiyale, Director, PE/Infrastructure Team at Impax

We are delighted to pass the baton on this significant portfolio to the quality Nordic renewables investor Locus Energy. We recognize the strategic fit to Locus‘ overall rationale and look forward to cooperating with Locus on the further development of the portfolio. SEB enjoys a long history in Norway and is together with Locus Energy well positioned for both continued growth and for maintaining the long-term commitment such portfolio represents to local landowners and stake holders.

Per Espen Watle, Chair of the Board, Blåfall AS

Image source: Blåfall AS