The acquisition of Fortum Oslo Varme has been completed

Hafslund Eco, Infranode and HitecVision are pleased to announce that the acquisition of Fortum Oslo Varme has been completed. The company will change its name to Hafslund Oslo Celsio. «Hafslund Oslo Celsio will be at the core of the green transition in Oslo», says Martin S. Lundby, Deputy CEO and Executive Vice President for Growth and Investments at Hafslund Eco.

Hafslund Oslo Celsio is the largest supplier of district heating in Norway and supplies heat to more than 200,000 people in Oslo. Following the transaction, Hafslund Eco is the majority owner with 60 percent ownership, while Infranode and HitecVision own significant minority positions of 20 percent each.

Important climate solution for Oslo

Through the agreement, financing is secured for the carbon capture (CCS) project at Klemetsrud. Klemetsrud is Oslo’s largest emission point and accounts for around 17 percent of the city’s total emissions. Realization of CCS will therefore be an important contribution to Oslo reaching the goal for the City of Oslo of reducing emissions by 95 percent by 2030.

– The partnership sees CCS as absolutely necessary to be able to drive sustainable energy recovery in a zero-emission society. We have great faith that together we will be able to carry out the CCS project, and thereby reduce CO2 emissions by almost 400,000 tonnes annually in Oslo, says Martin S. Lundby.

– We are very happy to be part of the solution in the funding of the CCS project together with our partners and the City of Oslo. Infranode has significant experience in district heating through other investments and view CCS as an increasingly important climate solution for the industry, says Erik Botnevik, Country Lead Norway at Infranode.

Will invest billions in district cooling

The new owners have agreed a financing plan for the company which entails investments of NOK 10 billion in the coming years. Around NOK 1.4 billion is for the CCS project, while the rest applies to other investments, such as district cooling and a new waste-to-energy line at Klemetsrud.

– More than NOK 3 billion will be invested in district cooling, which will be a large and new area for the company. The common denominator for many of the investments is the decarbonisation of the city, where Hafslund Oslo Celsio will have a prominent role, says Jon Vatnaland, senior partner in HitecVision.

The transaction values Hafslund Oslo Celsio (formerly Fortum Oslo Varme) at about NOK 20 billion on a 100% enterprise value basis. The partnership acquired 50 percent of the shares for about NOK 8 billion and a NOK 2 billion shareholder loan from Fortum. The City of Oslo has further transferred its 50 percent ownership interest in the company to Hafslund Eco as a property contribution, and Hafslund Eco takes over NOK 2 billion at the same time in shareholder loans from Oslo Municipality.

For more information:

Martin S. Lundby
Deputy CEO and Executive Vice President growth and investments in Hafslund Eco
+47 416 14 448

Per Storm-Mathisen
Head of Communications at Hafslund Eco
+47 982 55 406

Erik Botnevik
Norway manager in Infranode
+47 91 55 50 58

Jon Vatnaland
Senior Partner in HitecVision
+47 90 50 00 16

About Hafslund Oslo Celsio:

Hafslund Oslo Celsio (formerly Fortum Oslo Varme) was jointly owned by the City of Oslo and Fortum (50/50) prior to the transaction. Hafslund Oslo Celsio is the largest supplier of district heating in Norway, and supplied around 36% of district heating in Norway in 2021. The company supplied achi 1.8 TWh of district heating and 0.1 TWh electricity in 2021 with a comparable EBITDA of NOK 897 million. The company employs approximately 200 employees.

About Hafslund Eco:

Hafslund Eco is Norway’s second largest hydropower producer. The group owns wholly or partly 80 hydropower plants in Innlandet, Viken and Vestland, and operates a production of 21 TWh of hydropower. Hafslund Eco owns 50 percent of Eidsiva Energi, and thus half of Elvia, Norway’s largest grid company with about 950,000 customers, in addition to companies in broadband and district heating. Offshore wind is one of Hafslund Eco’s strategic focus areas and the group has ambitions to develop both bottom-fixed and floating offshore wind in Norway. Through the business area, New Energy, the group works with innovation and business development to accelerate the electrification of Norway. Hafslund Eco has about 450 employees and is wholly owned by Oslo Municipality.

About HitecVision:

HitecVision is a Norwegian asset manager and serial entrepreneur. With NOK 70 billion in total assets, the company is one of the leading investors in the European energy sector. Over the past 25 years, HitecVision has established or contributed to the development and growth of more than 200 companies and will in the next few years invest more than NOK 200 billion through its portfolio companies. Together with the companies’ management, board and partners, HitecVision’s 60 employees in Stavanger, Oslo and London contribute to building profitable and sustainable companies. In recent years, HitecVision has made the many exciting opportunities in energy transformation the main focus of its investments, where close collaboration with established industrial players is an integral part of the model.

About Infranode:

Infranode is a long-term infrastructure investor with a particular focus on the Nordic countries. Infranode invests in energy, energy distribution, renewable energy, digital infrastructure, transport, and social infrastructure. Infranode has offices in Stockholm, Helsinki, Copenhagen and Oslo, and a strong infrastructure investment team with extensive local and international experience. Infranode has about EUR 1.8 billion in committed capital from long-term institutional investors, including some of the most recognized pension funds in the Nordic region. Among the investors are Storebrand, Folksam, the Swedish municipal pension fund KPA Pension and the Finnish public sector pension fund KEVA. In this Infranode investment, Storebrand is a strategic co-investment partner and the largest individual investor.