Norsk Hydro subsidiary Hydro Rein has teamed up with GreenGo Energy on two projects in early-phase solar projects in southern Sweden. The total electric output for both projects is expected to be 118 MW.
Hydro says construction on the project will begin in 2027 and first production should occur the following year. GreenGo will develop the projects in the portfolio, while Hydro Rein will handle contractual issues and services including structuring, route to market, construction and operations. Hydro Rein will acquire full ownership of the project upon completion.
Ultimately Hydro hopes to power 100 percent of its operations, including the entirety of its aluminium smelting business, using renewable sources by 2040.
Olivier Girardot, Head of Hydro Rein, noted the importance of the deal in a press release.
“We are proud to announce our first solar investment in Sweden together with our partner GreenGo Energy. This is another step towards diversifying Hydro Rein’s Nordic portfolio, both geographically and technologically. We already have a significant pipeline of wind projects in Sweden. With new green industrial developments planned in the region, we see great potential for combining wind and solar to decarbonize Swedish industry.”
Karsten Nielsen, CEO of GreenGo Energy, said his firm is eager to enter into this new relationship with Hydro.
“This marks our first partnership agreement in the Swedish market, where we are rapidly expanding our footprint in an effort to support the Swedish renewable energy transition. With Hydro’s financial strength, experience in renewable investments and strong industrial presence in the Nordic power market, we have a great and scalable platform together.”
The two plants will have a total annual production of 143 GWh. Hydro says that site assessments are currently ongoing, and interconnection requests to the grid company for the projects have already been filed.
Hydro and GreenGo say this is the first of several anticipated projects, as both firms are eyeing Sweden as a growth market. Hydro says that between 2020 and 2021, grid connected photovoltaic (PV) systems in Sweden grew by 46 percent.
