Norsk Hydro, a Norway-based aluminium and renewable energy developer, has agreed to form a joint venture (JV) with Macquarie Asset Management to develop renewable energy projects.

Macquarie will form the JV with Hydro’s renewable energy company, Hydro Rein.

Hydro will own 50.1% of the JV and Macquarie will own the remaining 49.9% by investing $332m (Nkr3.7bn).

Theinvestment from Macquarie will be used by Hydro Rein to fund currentprojects under construction and develop its pipeline in the comingyears.

The transaction will be closed in the second quarter of 2024.

The transaction demonstrates a partnership between Hydro Rein and Macquarie that has been built over many years.

Thetwo are currently developing the 586MW Feijão combined wind and solarproject in Brazil. This project will support Hydro’s bauxite mine,Paragominas, and its alumina refinery, Alunorte, with a cleanelectricity supply.

The two companies also worked on wind projects in Sweden in 2017 and 2018.

The new joint venture will include all of Hydro Rein’s assets in Brazil, Denmark and Sweden, and all energy solutions projects.

NorskHydro president and CEO Hilde Merete Aasheim stated: “This transactionmarks an important milestone for the execution of Hydro’s strategy togrow in renewable energy. We launched Hydro’s renewables ambitionsthrough Hydro Rein less than three years ago. In a short time, thecompany has built a solid and impressive portfolio of renewable energyprojects. All of these will be key contributors to reducing CO₂emissions for Hydro and other industries.

“Weare excited to enter the next chapter of Hydro’s transition to net zerotogether with a solid partner in Macquarie Asset Management. We believetheir commercial strength and leading expertise in global renewableproject development will complement Hydro Rein and accelerate thecompany’s ambitions to decarbonise industries.”

Established in 2021, Hydro Rein is currently developing a 6.9GW portfolio pipeline of renewable energy projects.

These projects, located in the Nordics and Brazil, are either under construction or in the early stages of development.