Macquarie Asset Management has finalized its investment in a 49.9% stake in Hydro Rein, a renewable energy provider previously owned by Hydro, for approximately US$332 million. The investment, managed by the Macquarie Green Energy and Climate Opportunities Fund, was initially announced in October 2023 and aims to support Hydro Rein's portfolio of projects under construction and development.
Hydro Rein operates primarily in the Nordics and Brazil, with a significant pipeline of projects totaling 8.4 gigawatts in gross capacity. Since its inception in 2021, the company has established strong industrial partnerships, securing long-term power purchase agreements totaling 5.3 terawatt-hours annually. Notably, these agreements include partnerships with Hydro's Alunorte alumina refinery, Albras primary aluminium plant, and Paragominas bauxite mine.
Mark Dooley, Global Head of Green Investments at Macquarie, emphasized the importance of decarbonizing industrial materials such as aluminium:
“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.”
Eivind Kallevik, President and CEO of Hydro, expressed optimism about the partnership:
“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.”
