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SEVAB selects Solör as preferred buyer

In Sweden, Solör Bioenergy Group has announced that it has been selected as the preferred buyer of 80 percent of the shares in the Strängnäs municipal district energy company SEVAB Strängnäs Energi AB for a consideration of SEK 1.2 billion (≈ EUR 118.53 million). The transaction is subject to approval by Strängnäs City Council for which a decision is expected at the end of August 2021.

Solör Bioenergy Group has been selected as the preferred buyer of 80 percent of the shares in the Strängnäs municipal district energy company SEVAB Strängnäs Energi AB (photo courtesy P-O Rosén).

In January 2020, Strängnäs City Council decided to start a divestment process of the municipality’s district heating business. Currently, through SEVAB Strängnäs Energi, the municipality owns a combined heat and power (CHP) plant that produces district heating for connected villas and properties around Strängnäs municipality.

In the overall assessment of the choice between selling 80 percent and retaining 100 percent of the district heating business, the Board’s assessment is that the proposal for sale is the most favorable for Strängnäs’ municipal group – both from a corporate and business perspective but also from a customer perspective.

A sale of 80 percent of the district heating business contributes to strengthening the economy, implementing extensive investments for a more sustainable Strängnäs, creating a smooth tariff development while we still have a significant influence over the business by owning 20 percent of the shares, said Jacob Högfeldt (M), Chairman of the Board.

On an annual basis, the biomass-fired combined heat and power (CHP) plant supplies approximately 200 GWh of energy in the form of district heating, steam, and electricity.

Strängnäs District Heating will be a central part of Solör Bioenergy Group ́s development in the Mälardalen region. We are highly committed to supporting the city of Strängnäs ́ growth ambitions and further development of sustainability within the renewable energy market. The municipalities’ goal matches perfectly with Solör Bioenergy Group ́s strategy, said Martinus Brandal, Chairman and CEO of Solör Bioenergy Group.

The transaction is subject to approval by Strängnäs City Council which is expected to make a decision at its next meeting at the end of August 2021.

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