1 April 2022
Market analysts opine on Aker’s corporate machinations
On March 30,Mundus Nordic Green News reported that Aker Clean Hydrogen and Aker Offshore Wind were set to become subsidiaries of Aker Horizons. This announcement came barely a year after the IPO listing of the two junior companies in “a euphoric green wave”. At the top, the two were priced at a total of NOK 17.8 billion, a valuation which has fallen to less than NOK 6 billion now. Speaking of Aker Clean Hydrogen, fund manager Jon Hille-Walle of Nordea, said “the problem is that it is a small company, it is illiquid, the market has not liked that type of company.”
Turner Holm, an analyst at Clarkson's Platou Securities, believes the news is the absolute best outcome for the damaged offshore wind company Aker Offshore Wind, which had only NOK 280 million in cash, and was burning NOK 70 to 100 million a quarter. At that rate it would be out of money during the first half of 2022 and a rescue operation had to be made to save it, Holm believes. “It was game over for Aker Offshore Wind as an independent company, when it lost the license battle in Scotland.” (See MNGN 29/10/21 and MNGN 17/01/22)
According to Aker CEO Øyvind Eriksen, “The decision to merge the companies is based on a perception that it increases the chances of success and the opportunities to create significant shareholder value … The capital market's changed view of value stocks versus growth stocks, industrial segments and companies has also motivated us to simplify the structure and build a larger, more diversified and even more robust Aker Horizons”. But according to Hille-Walle, “Røkke is good. In all these green companies, he has been able to raise capital at a high price, to which others have been invited. And then he buys it back at a lower price.”
Floating LNG: Global lack of vessels bad for Europe, but good for Norway
The Financial Times writes that even though the US is promising to ship large amounts of gas to Europe to cover for Russian gas, a shortage of regassing terminals could be problematic. Given that a new build regasification terminal can take up to 4 years, floating storage and regasification units (FSRU) can be set up in months. But, getting hold of these FSRUs is another story. Only 33 of these vessels exist worldwide. Among owners, Norway’s BW Gas, Hoegh LNG and New Fortress Energy control over half the fleet, almost all of which are already chartered. US listed shares of the related Hoegh LNG Partners and New Fortress Energy have recently surged.
Aker ASA and Innovation Norway sign cooperation agreement
Aker ASA and Innovation Norway recently announced that the two parties have signed a cooperation agreement that will benefit the whole of Norway and increase ambitions. The agreement contains a pilot project and is the first in a series that will accelerate exports and increase innovation cooperation in the Norwegian ecosystem. The collaboration is further aimed at making Norway a world leader in green technology and sustainability, and to establish an international understanding of Norway as one of the most innovative countries in Europe.
March 2022 was Denmark’s driest March since 1874
Published figures from the Danish Meteorological Institute (DMI) show that March 2022 was the driest March since 1874, when the institute began to record precipitation. Last month, 4 millimetres of precipitation fell in Denmark, almost 3 millimetres less than the most recent record low of 7 millimetres which was recorded in 1969. A record number of hours of sunshine was also recorded in March, with 239 hours of sunshine. The previous sunshine record of 200 hours for March was recorded in 1943. According to Mikael Scharling, climatologist at DMI, it is still too early to say whether the record measures in March are a sign of a larger climate development, but several researchers have theories that so-called high-pressure blockages may become longer-lasting in the future.
Statkraft signs credit facility with sustainability target of EUR 1.3 billion
Statkraft has signed a new 5-year credit facility with a sustainability target of EUR 1.3 billion, where the interest margin will be adjusted annually based on Statkraft’s achievement of three predefined strategic sustainability targets. The goals are related to the company’s development of renewable production capacity for hydropower, wind and solar power, the company’s commitment to health, environment and safety, as well as the proportion of women in management positions. The agreement contains an option to extend by 1+1 years, and replaces Statkraft’s existing facility of NOK 9.2 billion signed in June 2016.
Advanced Soltech signs SEK 60 million agreement in China
Advanced Soltech’s subsidiary in China has signed an order in China with a company that manufactures aluminium products. The order concerns the installation of a solar energy plant of approximately 3.8 MW and is estimated to generate annual revenues of SEK 3 million, or SEK 60 million during the agreement’s 20-year term. The investment in the facility amounts to SEK 23.2 million and leads to an annual saving of 2,340 tonnes of emitted carbon dioxide. Construction is scheduled to start during 2Q22.
Soltech purchases rest of Din Takläggare and makes additional acquisitions
Soltech (unrelated to Advanced Soltech) has acquired the remaining 40% of the shares in the subsidiary Din Takläggare, and now owns 100% of the company. At the same time, the Group makes its first additional acquisition by acquiring 100% of the solar energy company Solexperterna. The acquired company will be part of the now wholly owned subsidiary Din Takläggare from 1 April and Solexperterna is expected to contribute approximately SEK 5 million in sales during 2022. The acquisitions have been financed entirely from Soltech’s own capital and with newly issued Soltech shares.
Nel ASA receives order for H2Station
Nel Hydrogen Fueling has received a purchase order from Hydrogen Technology & Energy Corporation (HTEC) for one H2Station hydrogen fueling model, with a combined value of the purchase orders amounting to approximately USD 1.5 million. The H2Station will be used to fuel zero-emission light- and heavy-duty vehicles in Canada and is expected to be put into operation during 2023.
HOFOR and BIOFOS enter into 20-year agreement
HOFOR and BIOFOS have entered into a 20-year agreement to supply Copenhagen with green biogas from the Damhusåen treatment plant in Valby. This is the third biogas agreement that the two companies enter into, and it brings HOFOR close to its goal of delivering 100% of CO2-neutral city gas with local biogas sources in 2025. When the project is put into operation in 2024, it will increase the proportion of locally produced biogas in the city gas from 60% to 85%.
What we’re reading
- Global dealmaking falls to lowest level since start of pandemic (Financial Times)
- Climate Funds Heat Up Raising $2.8 Billion in Three Months (Bloomberg)
About Nordic Green News
The Nordic countries are some of the most dynamic and successful economies in the world. They are also leaders in sustainability, from renewable energy, biofuels, carbon capture and storage and the hydrogen economy, circular economy business models and battery development, the Nordics are pioneers in policy design, technology development and consumer uptake. Mundus Nordic Green News is covering this transition for the international community. Every day we curate the stories of most relevance to international businesspeople and policy experts from the flow of news. Mundus Nordic Green Indices summarise the meta-data from our daily coverage to enable easy tracking of trends. We supplement these with our own opinion pieces and commentary.
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