Macquarie Asset Management has finalised its investment in a 49.9% stake in renewable energy provider Hydro Rein from Hydro for approximately US$332m.
Hydro Rein supplies the industrial sector and Macquarie’s investment, first announced in October 2023, will be held by the Macquarie Green Energy and Climate Opportunities Fund and help finance Hydro Rein’s pipeline of projects in construction and development.
Hydro Rein has 8.4GW gross capacity in development across its core markets in the Nordics and Brazil.
The business said it has developed strong industrial partnerships since launching in 2021, with long-term power purchase agreements totalling 5.3TWh annually. This includes offtake agreements with Hydro’s Alunorte alumina refinery, Albras primary aluminium plant and Paragominas bauxite mine.
Hydro Rein also co-developed a wind project to power the Norwegian operations of telecommunications company Telenor.
Macquarie’s investment will support the continued expansion of renewable energy solutions alongside Hydro’s ambition to accelerate the growth of low-carbon aluminium production and decarbonise hard-to-abate industries.
Global head of green investments at Macquarie Mark Dooley said: “Decarbonising vital industrial materials like aluminium is a key challenge of the energy transition.
“Hydro Rein is helping to pioneer low carbon aluminium smelting and is playing a leading role in enabling industries like the automotive sector to reach its decarbonisation targets.
“I look forward to joining forces once again with Hydro, combining our capabilities to unlock a greener future for industry and the communities and markets served by industry.”
Hydro president and chief executive Eivind Kallevik added: “We are excited to conclude the transaction, marking the next chapter in our renewable energy partnership with Macquarie Asset Management.
“Hydro Rein is well equipped to execute on its ambitious growth agenda, with a strong project pipeline going forward. Industrial decarbonization begins with renewable energy and Hydro Rein will be instrumental in supporting Hydro as well as other industries with the energy we need to reduce our CO2 emissions.”