AUS
NZ
UK
CA
USA
IND
Downing Renewables & Infrastructure (LSE:DORE) announced on Monday its plan to acquire three hydropower plants in Sweden, marking a significant expansion of its renewable energy assets.
The company, listed on the London Stock Exchange, disclosed that the acquisition encompasses the Hagby, Gyttorp, and Hammarby plants, all situated on the Norasjön River in Örebro County within Sweden's SE3 price region. This deal, estimated at approximately £5 million, adds these facilities to DORE’s renewable energy portfolio.
The combined annual average production of these plants is anticipated to be around seven gigawatt-hours. Following planned upgrades, production could increase by an additional 0.5 gigawatt-hours. The Hagby and Gyttorp plants, which were originally built in 1946 and 1952, respectively, underwent extensive refurbishments in 2007. The Hammarby plant, constructed in 1982, has recently received a significant upgrade.
This acquisition represents a strategic move into a new geographical region, offering enhanced revenue potential, particularly during the winter months when the plants' storage capabilities are most advantageous. With the addition of these three plants, DORE’s hydropower portfolio will expand to 37 assets, with a projected annual average production of approximately 222 gigawatt-hours.
Tom Williams, partner and head of energy and infrastructure at Downing LLP, expressed enthusiasm about the expansion. He highlighted the strategic importance of increasing their hydropower assets in the SE3 region and the anticipated benefits from integrating these new facilities. Williams noted that the acquisition aligns with the company's focus on hydropower as a key component of its strategy in Sweden and is expected to contribute to cost efficiencies and enhance their digitalization and revenue optimization initiatives.
At 1034 BST, shares in Downing Renewables & Infrastructure experienced a slight decline of 0.15%, trading at 78.08p.
