Norway-headed renewable energy major Statkraft ASA has announced that it has signed an agreement to divest its district heating business Statkraft Varme to an investor consortium owned by Patrizia SE and Nordic Infrastructure AG (NIAG) and that already has extensive experience in district heating and related activities in the Nordic district heating market.
In May 2024, Statkraft announced that the company would seek new owners for its district heating subsidiary “Statkraft Varme”.
According to a statement, this agreement, which is subject to approval of Norwegian competition authorities, marks a significant milestone in Statkraft’s efforts to concentrate its operations on fewer technologies and prioritize investments in hydropower, wind power, solar energy, and batteries in select markets.
The purchase price is agreed at NOK 3.6 billion (≈ EUR 309.9 million), and together with expected future investments in district heating, it will free up capital for these prioritized areas.
Statkraft has big plans for investment in Norwegian hydropower and wind power, to ensure profitable power production adapted to future needs. The sale of the district heating business contributes capital to this strategy, said Henrik Sætness, EVP at Statkraft.
A significant player
Statkraft Varme has been engaged in energy recovery and district heating since 1982. Currently, the business is a significant player with 13 locations in Norway and Sweden, delivering around 1.2 TWh of energy annually to over 40,000 customers.
District heating is heavily regulated by the authorities and is a crucial part of the energy system and value creation in the areas where it is located.
District heating is an important part of the green energy system and the transition towards a more circular economy. The use of surplus energy helps to free up important capacity in the power grid. We are pleased to have reached an agreement with companies that have the experience and ability to continue the good work done by our employees in Statkraft Varme, said Henrik Sætness.
All employees in Statkraft Varme will follow the sale and retain their rights according to applicable regulations.
At PATRIZIA, we think long-term and build sustainable businesses in close collaboration with companies and other stakeholders. Our acquisition of Statkraft Varme reflects this strategy. We see a well-run company, and by integrating local expertise with our global platform, we aim to further develop sustainable solutions to support a low-emission energy supply. PATRIZIA, through SAREN Energy, already owns and operates several companies in Norway within heating and energy recovery. This includes Kvitebjørn Varme in Tromsø, SAREN Energy Sarpsborg, and SAREN Energy BIO-EL, said Fredrik Næsse, Director at PATRIZIA, responsible for energy investments in the Nordics.
NIAG is an industrial investment company wholly owned by the four founding partners of the Solør Group.
NIAG is the main shareholder in Solør Bioenergi, and the strategy is to be a long-term, active, and driving owner within renewable energy in Sweden and Norway.
Subject to approval, the acquisition is expected to be completed by the end of the year.
