aventron AG ("aventron") and Aberdeen Standard Investments ("ASI") have agreed to merge their Norwegian small hydropower activities. This will create Norway's third largest small hydropower operator with an annual production of approximately 460 GWh.
The combined portfolio of aventron and ASI will focus on the development, construction, production and distribution of renewable energy through hydropower and wind power in Norway. The combined portfolio comprises 41 small hydropower plants (including one plant under construction) as well as one operating wind farm and another wind farm under construction. The combined annual production capacity is expected to reach approximately 460 GWh once all projects are fully operational.
The hydropower sector in Norway is one of the most developed in the world and has significant potential for development and consolidation. As aventron's assets are mainly located in southern Norway and ASI's portfolio mainly in the north of the country, the two portfolios complement each other perfectly. The merger offers geographical diversity, operational synergy potential and further mitigation of risks by improving the long-term competitive position of the combined company.
The merger was achieved through a contribution in kind, with aventron remaining the majority shareholder of the joint company aventron Norway AS. ASI will hold a substantial minority position through its first infrastructure fund, SL Capital Infrastructure I LP. The merged company will benefit from a shareholder group that brings together experienced partners with deep expertise in renewable infrastructure. The shareholders are united in their desire to drive further, sustainable growth for the company while continuing to focus on the highest standards of safety, environmental protection and operational reliability.