OVF and Hydro Rein join forces on new solar power initiative
New solar power company – Geisli Energi AS
During Arendalsuka, the agreement between the Church Endowment Fund (Opplysningsvesenets fond, OVF) and Hydro Rein was signed, setting the course for the establishment of Geisli Energi AS, a joint solar power company for the development and production of clean, renewable energy in Norway. In the first phase, the new company will develop up to seven solar energy projects totalling 655 MW on selected properties owned by OVF.
Large-scale renewable energy projects require access to land and capital. OVF and Hydro Rein believe that the likelihood of success increases when responsibility and risk relating to financing, development, implementation and operations are shared. The industrial connection and long-term ownership are key to realising successful projects. Hydro Rein will serve as project manager and be responsible for developing and constructing the solar power plants. The size of the solar power plants will range from just under 20 MW to nearly 100 MW, totalling 655 MW. Annual production is estimated at 330 GWh, with the potential for an additional 400 GWh per year.
OVF is one of Norway’s largest landowners and, through Clemens Kraft, is well established in hydropower. The fund owns several relevant areas with good solar conditions near industrial facilities, and the parties have begun work to select specific locations for the projects.
– We look forward to scaling up Hydro Rein’s solar power ambitions in Norway together with OVF. Here, two Norwegian organisations with long-standing traditions are joining forces in a joint solar power company to develop robust projects in close dialogue with local communities and municipalities. We look forward to delivering on the promise of more green power for Norway and Norwegian industry, says Tor-Ove Horstad, Chief Commercial Officer (CCO) and head of Hydro Rein in Norway.
The next step in the collaboration is to conduct thorough assessments of suitable OVF properties and decide which areas to prioritise. When the solar power facilities are realised, this could facilitate community development and the establishment of new industry in areas that have had more limited access to power.
– We also look forward to developing solar power on OVF properties and contributing more clean energy to the green transition, says Ole-Wilhelm Meyer, CEO of the Church Endowment Fund.
– We are very pleased with the partnership with Hydro Rein – a competent and major industrial player with deep roots in Norway, just as OVF has. Through the development of solar power, OVF is continuing and strengthening its contribution to the development of rural Norway and taking further concrete steps to help us achieve our shared climate goals, says Meyer.
The owners behind Geisli Energi AS
The Church Endowment Fund
OVF was established in 1821 and manages property and assets that have historically been associated with parsonages in Norway. For 200 years, OVF has contributed to developing local communities throughout Norway as one of the country’s largest landowners. OVF is a wholly state-owned fund. During spring 2023, a professional review of OVF’s property portfolio identified properties that may be suitable for solar power development.
Hydro REIN
Rein is Hydro Energy’s development company for renewable energy. Hydro Energy is one of Norway’s largest power producers, with a market presence throughout the Nordic region. Hydro Rein draws on the Hydro Group’s century-long experience in industrial development, and through Hydro Rein, Hydro is stepping up its efforts to help industry address climate change.