Investment manager Downing is expanding its focus on sustainable investing with the acquisition of Norwegian hydro power plant Lauvstad Kraftverk.
It has been sold by Fossberg Kraft, which has developed the 6GWh hydro power plant in the Drangedal region of southern Norway.
Downing had already paid 20% of the a £3m (€3.4m) purchase price to the project’s developer to part fund construction and the balance was paid at completion.
The latest deal builds on a series of investments made by Downing in the Nordic region.
Earlier this year Downing made its first investment in Finland, in addition to a number of hydropower assets in Norway through its partnership with Fossberg Kraft.
Head of energy & infrastructure at Downing Tom Williams said: “The Lauvstad hydropower plant acquisition has represented an excellent opportunity to further expand our investment allocations in hydropower and the Nordic region.
“Financing newbuilt hydro in the Nordic region is an important part of our strategy as we look to continuously diversify our portfolio by both geography and technology.
“By acquiring a hydropower plant that has recently been constructed, we have also diversified our investment portfolio further by project phase.
“We look forward to continuing our excellent relationship with Fossberg Kraft to further expand our Norwegian hydropower portfolio.
“As a certified B Corp, we are committed to responsible investing and delivering on the strategy.
“We look forward to adding further attractive projects to our portfolio in due course.”