1 February 2016

EF BRIEFS: Dong, GreenStream, Pakistani Solar, Scatec

Dong to use oil and gas revenues to fund renewables expansion

Dong Energy said it will use the cashflows from its fossil- fuel exploration and production (E&P) activities to fund future investments in renewable energy.

"Investments in future growth will be focussed on renewable energy," the Danish company said in a statement.

The decision was announced following a strategic review of the company's E&P activities, triggered by its plans for an initial public offering (IPO) and a radical overhaul of its business that will see it divest its oil and gas pipelines. (LINK)

The E&P business consists of oil and gas assets in Denmark, Norway and the UK.

Since its formation through the merger of six Danish companies in 2006, Dong claims to have changedfrom "one of the most coal-intensive utilities in Europe to a global leader in renewable energy".

 

GreenStream raises additional capital for Chinese projects

GreenStream Group has raised a further €5.4 million ($5.9 million) of debt and equity financing to help grow its energy efficiency business in China.

The new funds come from existing shareholders, including Ilmarinen Mutual Pension Insurance Company and a new investor – the Nordic Environment Finance Corporation.

While most of the financing is for the Helsinki-based parent company, €1.4 million will go directly to GreenStream Energy Efficiency Investments, the company's subsidiary in Hong Kong. This sum includes an investment from

FinnFund and a loan from the Shanghai Pudong Development Bank.

Norwegian firms to invest $250m in Pakistan solar project

A group of Norwegian companies are to invest an initial $250 million to build a 150MW solar power plant in Pakistan's Sindh province, said Norway's ambassador to the country, Tore Nedrebo.

He did not identify the companies involved, but said the project was due to begin this year.

The project would represent a significant expansion in trade between the two counties which currently totals no more than $80 million/year, Nedrebo said.

 

Scatec eyes Brazilian solar market with latest acquisition

Norwegian renewables company Scatec Solar has bought majority stakes in two Brazilian projects, from Spain's Gransolar.

The sites, with a combined capacity of 78MW, have 20-year power purchase agreements in place with the Brazilian Electricity Regulatory Agency, ANEEL. Scatec will build, own and operate them, owning a 70% stake in each, with Gransolar retaining 30%. Construction is slated for early next year and the expected capital expenditure will be BRL418 million ($105 million), according to Scatec.

CEO Raymond Carlsen said the solar market in Brazil had "significant long-term potential", adding: "We want to take part in the development of this market".