aventron AG and Aberdeen Standard Investments (ASI) have agreed to merge their small hydropower portfolios to create a small hydro operator with annual production capacity of 460 GWh.
aventron and ASI’s combined portfolio, located in Norway, will focus on the development, construction, production and distribution of renewable energy through hydropower and wind power. The combined portfolio comprises 41 small hydro power plants (including one under construction) as well as an operational wind farm and a wind farm under construction.
The hydropower sector in Norway is one of the most developed in the world and benefits from significant development and consolidation potential. With aventron’s assets mostly located in south Norway and ASI’s portfolio primarily based in the north, the two portfolios are highly complementary. The merger provides geographical diversity, operational synergy potential and further de-risks the business by enhancing the long-term competitive position of the joint company, according to a press release.
The merger has been achieved through a contribution in kind, with aventron becoming the majority shareholder of the joint entity, aventron Norway AS. ASI through its first infrastructure fund, SL Capital Infrastructure I LP, will hold a substantial minority position with governance rights.