Eqva subsidiary sells hydropower project to UK infrastructure fund

Fossberg Kraft, a subsidiary of Eqva ASA (OSE: EQVA), has entered into an agreement to develop and sell the Skjeggfoss hydropower plant in Drangedal in southern Norway to a UK based infrastructure investor. Fossberg Kraft will continue to operate the plant on behalf of the new owner. The value of the project is approximately NOK 45 million.

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Production capacity of the plant is 5,6 GWh per year. The development project is approved by relevant authorities, and construction will start in early 2023. The project will be handed over to the new owner upon completion towards the end of 2023 or early 2024. It will provide for good utilisation of Fossberg Kraft’s capacity and expertise and is expected to generate profits above Eqva’s target levels.

“The agreement proves Fossberg Kraft’s ability to identify, acquire, develop, and sell hydropower projects of this kind. We have over time developed a close partnership with the buyer, and we are pleased to see that we again have been able to present an attractive investment opportunity for investors in renewable power production,” said  Tom Jensen, managing director of Fossberg Kraft.

Fossberg Kraft recently completed the sale of the Lauvstad hydropower plant (yearly production capacity also abt. 5,6 GWh/year) to the same buyer

Fossberg Kraft specialises in development and operation of small-scale hydropower plants in Norway. The company is part of Eqva’s Products, Solutions & Renewables segment. It has 2 hydropower plants under construction, and it operates 6 plants on behalf of other owners.