The renewable energy arm of Norsk Hydro, Hydro Rein and Germany's Commerz Real will launch a joint venture (JV) to acquire and develop GreenGo Energy's 362 MW solar PV capacity in Denmark, and eventually execute over 1 GW capacity of the Danish developer's utility scale solar portfolio in the country with more than €600 million.
The 50:50 JV will develop 2 GreenGo projects with 170 MW and 192 MW capacity in Jylland. Construction is scheduled to start onsite in 2024 and commercial operations due in 2026. GreenGo will continue to develop the projects till commercial operations start when these facilities are likely to generate 412 GWh annually.
The deal marks Hydro Rein's maiden investment in Denmark and also in the Nordics where it plans to expand further. "The investment will diversify our Nordic portfolio in terms of technology and production, and we see great potential in combining wind and solar to help decarbonize major industrial players," said Head of Hydro Rein, Olivier Girardot.
Even for GreenGo, it is the company's '1st GW scale partnership agreement for our Mermaid portfolio in Denmark', according to GreenGo CEO Karsten Nielsen.
Demand for solar in Denmark is set to grow as the government targets 20 GW installed capacity by 2030. "The Danish investment market for photovoltaic offers the potential for growth and diversification for our institutional investors in particular. With Hydro Rein and GreenGo Energy, we also have experienced partners firmly rooted in the Scandinavian market by our side," added Global Head of Institutional Sales and Group Treasury at Commerz Real, Barkha Mehmedagic.
Commerz Real is the asset manager for real asset investments of Germany's Commerzbank Group.
While GreenGo has sold its 2 assets in Denmark to the proposed JV, the company recently announced a partnership with Nordic Solar to co-develop 250 MW solar in Denmark (see Europe PV News Snippets).