Govt to back Statkraft's green expansion with USD 1.4bn

Dec 5, 2014 - Norwegian state-owned utility Statkraft AS said on Friday that the government will support its renewable energy expansion with NOK 10 billion (USD 1.4bn/EUR 1.13bn).

More specifically, the government will infuse NOK 5 billion worth of equity into the company and will also cut its future dividends by the same sum. "The capital will be invested in hydropower, wind power, district heating and other renewable energy technologies,” said Olav Fjell, Statkraft’s board chairman. He added that the expansion programme envisages investments in activities both at home and the rest of Europe, as well as in growth markets in Asia and South America.

The capital injection needs to obtain parliamentary clearance.

The company is currently active in the hydropower, wind power, gas-fired power and district heating markets. It is Europe’s largest producer of renewable energy.

In July, Statkraft sold a 49% stake in its UK onshore wind power portfolio to Gingko Tree Investment Ltd. The particular portfolio includes three operational wind parks, namely the 23-MW Alltwalis facility in Wales as well as the 52.5-MW Baillie and 66.7-MW Berry Burn wind farms in northern Scotland.

(NOK 1.0 = USD 0.140/EUR 0.113)

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