Arendals Fossekompani turns 129

The source

Arendals Fossekompani was founded by two entrepreneurs who saw vast opportunities in natural resources. The company’s original founder was Ragnvald Blakstad. Born in 1866 in Asker, Norway, he moved to Arendal in 1890 and started to work with lumber trade. It is assumed that Blakstad’s work in this industry drew him to his interest in the Arendal watercourse and the potential for hydropower production. In 1891, he began purchasing properties in the south of Norway with a clear plan on eventually purchasing a part of the Arendal watercourse. By 1986, he had done just that and established Arendals Fossekompani. 
 

That same year, the company purchased the waterfall rights to Bøylefoss and Flatenfoss, both located in the Nidelva River, the main river of the Arendal watercourse. Blakstad believed that both waterfalls were relatively easy to develop and that their proximity to the coast would ensure a demand for hydropower.

After close to a decade of Blakstad sitting on his property investments, Norwegian entrepreneur and industrialist, Sam Eyde, played an important role in the start-up phase of the company. Born in Arendal on October 29th, 1866, he not only founded Norsk Hydro, but from 1900 onwards, he also launched Elkem, Store Norske Spitsbergen Kullkompani, and Falconbridge—more than 30 companies in total. He was a trained civil engineer and saw the potential in the waterfalls of the Arendal watercourse.

The Arendal area was known for its many ore deposits, and Sam Eyde wanted to establish an ironworks in the region. The ironworks could be powered by the waterfalls in the Arendal watercourse and in 1907, he secured most of the shares in Arendals Fossekompani becoming known as one of its founders. 

To this day, tens of thousands of jobs and several hundred billion kroner in annual revenue can be attributed to Sam Eyde’s initiatives.

Blakstad and Eyde long resumes may look similar. Both were established businessmen who capitalized off natural resources. However, over time, Eyde’s reputation continued to grow as he cemented his status as a serious industry developer, whereas Blakstad is viewed more as a spectator.

A community built around hydropower 

The construction of Bøylefoss power plant started in 1911 under Eyde’s leadership, in parallel with the establishment of new industry in Eydehavn. Between 1911 and 1920, a total of 1030 workers took part in the building process.  The building process went quickly and in 1913, Eyde’s and Blakstad’s shared dream of producing hydropower became a reality in the summer when Bøylefoss power station opened for the first time. That same year, Arendals Fossekompani was listed on the stock exchange in the capital. 

With the opening of the new hydropower station came a new community in Bøylestad. Social meet ups at the local train station and in the town’s only grocery store soon spanned further to a newly opened post office and school that was built to educate the children of the growing number of families that lived near the powerplant. 

A change path 

Over time, Arendals Fossekompani evolved from being purely a power producer to an industrial investor as we began investing in other industries.

In the late 1960s, the companies mission statement was amended to also include “the operation or participation, directly or indirectly, in other industrial enterprises or business ventures, including investments in real estate”. The expansion of the mission statement was largely due to the uncertainty over the long-term success of power delivery to local industries, in addition to the demanding costs of necessary maintenance and modernization of hydropower machinery. 

Adopting a global perspective

As our investments and commitments started to extend beyond power production, we developed a more global view and donated two remaining old turbines from the central magnetization unit at Bøylefoss, to the Santal Mission in 1972. The machines were used for power production in Nepal after having served at Bøylefoss in Froland since 1911. Fossekompani covered the costs of dismantling and shipping the equipment to Asia and it is confirmed that up until 1996, the donated unit was still producing electricity in Asia.

By the middle of the 1970’s the structure of Arendals Fossekompani changed with new long-term investors including Erik Must and Kjell Christian Ulrichsen. Both playing a large role in the future direction of Arendals Fossekompani. 

During the 1990’s, deregulation of the Norwegian electricity market presented new market opportunities. Arendals Fossekompani played an active role and established a subsidiary, Markedskraft, as an independent provider of services in the Nordic and European wholesale electricity market. At the time, Arendals Fossekompani administration oversaw hydropower operations while board members where in charge of managing new investments. 

Hydropower: Yesterday, today and tomorrow

Blakstad and Edye’s original mission to produce renewable energy for the communities around southern Norway continues with growing force. Over the past century, we have acquired new waterfalls including, including Bøylefossen and Flatenfossen.

Today, hydropower accounts for approximately 4 percent of revenue. Arendals Fossekompani owns and operates three hydropower plants on the river Nidelva in the Arendal water system with our fourth, Kilandsfoss power plant, currently under construction with a projected opening in 2026. 

• Bøylefoss power plant, in operation since 1913
• Flatenfoss 2, in operation since 1981
• Flatenfoss 3, in operation since 2009, replacing Flatenfoss 1

• Kilandsfoss, projected opening, 2026

   

The new millennium marked the start of international endeavours for Arendals Fossekompani building of its local hydropower producer and transforming into an international investment company. 

Starting in 2000, a series of successful acquisitions of Norwegian and international companies made Arendals Fossekompani the company it is today. 

At present

With over a century of industrial development experience, our investment approach leverages our strengths. we continue to utilize the benefits of water and act as an industrial investor in the fields of clean energy and technology.