Arendals Fossekompani sells Cogen Energia to MET Group
Arendals Fossekompani (OSE:AFK) has entered into an agreement with European energy company MET Group for the sale of Cogen Energia.
The agreement signed in Arendal and Madrid today, transfers full ownership of Cogen Energia from Arendals Fossekompani to MET Group. The financial details are not disclosed, but Arendals Fossekompani expects to record a smaller profit. The sale of Cogen Energia is part of a strategic move on Arendals Fossekompani’s part, to exit all fossil fuel positions.
Fully owned by Arendals Fossekompani since 2011, Cogen Energia is recognized as a premier player in the Spanish cogeneration market. Cogen Energia’s cogeneration plants use surplus heat from gas-based electricity production to generate steam for industrial partners located nearby. This results in higher energy efficiency and reduced CO2 emissions, as well as improved competitiveness for the industrial partners.
In 2020, Cogen Energia reported revenues of NOK 516 million and an EBITDA of NOK 46 million.
“We are parting ways with an excellent team which has successfully maneuvered Cogen Energia in a rapidly changing landscape. Cogen Energia is well positioned for the next step, and we leave the company in the able hands of MET Group,” says Ørjan Svanevik, CEO of Arendals Fossekompani.
Even though combined heat and power production is a bridging technology on-route to a low-carbon society, it is not core business for Arendals Fossekompani.
Balancing and flexible energy production have become particularly important in the European power markets, as the increasing amount of intermittent renewable energy supply being fed into the grid makes matching power supply and demand ever more difficult. Technologies like CHP (combined heat and power) or CCGT (combined cycle gas turbine) plants are flexible and efficient solutions that help to balance the power grid.
With this transaction, MET Group will make its first sizeable investment in Spain’s CHP industry. MET’s competences in natural gas and gas-based power production allows the company to better lead the energy transition from fossil-fuels based to zero-carbon world.
Johannes Niemetz, CFO of MET Group commented on the acquisition: “Flexibility assets are an essential part of MET Group’s integrated strategy to support the global energy transition. We are looking at assets that we believe we can operate efficiently, creating synergies with our existing positions in the gas and power markets. MET’s core growth in flexibility assets will be in Spain, Italy, and the newly entered German market.”
For additional comments, please contact:
Ørjan Svanevik, CEO at Arendals Fossekompani: +47 414 51 560
Arendals Fossekompani | www.arendalsfossekompani.no
Arendals Fossekompani (AFK) is a green-tech investment company that owns energy- and technology-related companies which enable the transition to a green economy. AFK operates globally in several future-oriented industries, including 3D printing, algo trading, satellite services, battery- and solar technology, software, and digitization. Established in 1896, AFK has been a proud producer of renewable hydro power for more than 100 years. The company is headquartered in Arendal, Norway and listed at the Oslo Stock Exchange.
MET Group | www.met.com
MET Group is an integrated European energy company, headquartered in Switzerland, with activities in natural gas and power markets. MET is present in 14 countries through subsidiaries, 25 national gas markets and 22 international trading hubs. In 2020, MET Group’s consolidated sales revenue amounted to EUR 11,2 billion, the volume of natural gas traded was 71 BCM.
Cogen Energia | www.cogen-energia.com
Cogen Energia is recognized as a premier independent player for operating combined heat and power production facilities in Spain. Cogen Energia operates in the Spanish market, managing a portfolio of cogeneration plants with an electric capacity above 260 MW in most relevant industrial sectors: paper, food industry, chemical, textile, cheese manufacturing, and more. In addition to operating its own cogeneration plants, Cogen Energia is a provider of services to third party plants within areas such as operations management, maintenance, and service, as well as energy management and optimization.