Aker Extends Reach into Renewable Energy With Acquisition of Mainstream Renewable Power
Industrial investment company Aker ASA announced today an agreement by its wholly owned subsidiary, Aker Horizons to acquire 75% interest in renewable energy company Mainstream Renewable Power. The deal assigns an equity value to Mainstream of €900 million.
Founded in 2008, Mainstream has developed and brought forward assets totaling 6.4 GW of renewable energy capacity to financial close and sold a significant number of wind and solar projects to world class counterparties. The company is one of the most successful independent developers of offshore wind at scale globally, including projects representing 22% of the UK’s offshore wind capacity (in operation or under construction) which Mainstream has developed and divested. Mainstream’s current portfolio includes 1.4 GW in operation or under construction, primarily consisting of onshore wind and solar assets in Chile and South Africa, as well as an advanced pipeline of 700 MW expected to reach financial close in 2021, and more than 9 GW of other development assets.
Kristian Røkke, Chief Executive Officer of Aker Horizons, said:
“We are thrilled to partner with Mainstream as we accelerate our journey of what we call planet-positive investing. Mainstream’s role as a pioneer in renewables and its strong entrepreneurial culture is a good fit as we carve out our path forward in the energy transition. Through the acquisition of Mainstream, Aker Horizons will gain a platform to drive forward its renewable energy ambitions and position itself in a growing market for hybrid projects.”
Aker Horizons was established by Aker in July 2020, with a mission to develop and operate companies in growing renewable energy and low-carbon technology segments. The company has set an ambition to develop companies with a total capacity of 10 GW and remove the equivalent of 25 million tonnes CO2 per year by 2025. Aker Horizons is currently preparing for a potential IPO, with plans for a near-term private placement and a listing on Euronext Growth, with a subsequent transfer of the listing to Oslo Børs expected within 12 months.
Øyvind Eriksen, President and CEO of Aker ASA and Chairman of Aker Horizons, said:
“Aker made a step change in the last year, taking a position within renewable energy production, green technologies, digitalization and other mega trends that have seen accelerating flow of resources and capital, not just in Aker, but in global markets. Combining Mainstream’s global organization and renewable assets with Aker’s 180-year track record of building and developing industrial companies is another step in line with our long-term strategy for value creation and to position Aker Horizons for significant and sustainable growth in renewable energy markets.”
Mary Quaney, Chief Executive Officer of Mainstream Renewable Power, added:
“We are delighted to have such a highly respected business as Aker Horizons on board, enabling Mainstream to materially accelerate its growth plans to deliver a global portfolio of wind and solar assets. We plan to bring 5.5 GW of renewable assets to financial close globally by 2023, which sets us firmly on track to becoming one of the world’s first pure-play renewable energy majors.”