WHITEHELM AND DAIMYO AGREE TO MERGE ENERGY FROM WASTE ACTIVITIES, CREATING A LEADING PLAYER IN THE NORWEGIAN HEAT MARKET

20 July 2020

LONDON/OSLO – 17 July 2020. Whitehelm Capital Ltd (“Whitehelm”) and Daimyo AS (“Daimyo”) are pleased to announce the merger of Sarpsborg Avfallsenergi AS and Kvitebjørn Bio-El AS in SAREN Energy AS (“SAREN Energy”), to establish a platform focused on the operation of renewable and sustainable energy solutions for commercial and industrial companies in the Nordics.

  • SAREN Energy will deliver more than 300 GWh of steam and heat to a district heating network and local industries.
  • The joint venture creates a highly efficient organization focused on providing long-term, environmentally friendly waste treatment solutions and the production of energy from waste from a portfolio of two modern energy recovery facilities.
  • SAREN Energy is ideally placed to drive further consolidation and efficiencies in fragmented regional markets.

Sarpsborg Avfallsenergi AS (“SAE”) is a Norwegian “inside the fence” renewable heat generation plant that was commissioned in March 2010. The facility is located in world leading biorefiner Borregaard ASA’s industrial site in Sarpsborg, south of Oslo. SAE has an installed capacity of 32.4 MW and gross production of 255 GWh, based on a modern gasification technology developed by Energos. SAE uses a feedstock of c.80,000 tons of waste per year to replace fossil fuel as an alternative energy source. Its operation allows the reduction of c.40,000 tons per annum of CO2 emissions, equivalent to the environmental benefit of 4 million trees.

Kvitebjørn Bio-El AS (“BIOEL”) is a Norwegian fuel-flexible waste-to-energy plant located at Øra, Fredrikstad, in close proximity to SAE. The plant was commissioned in 2008 and is operated by FREVAR KF. BIOEL has an installed effect of 25 MW and the capacity to recover energy from c.50,000 tons of normal and hazardous waste per year. The yearly gross production is c.160 GWh supplied as heat to Fredrikstad Fjernvarme AS, steam to local industrial companies, and electricity to the grid.

The creation of SAREN Energy establishes a leading Nordic energy platform focused on the operation of renewable and sustainable energy solutions for commercial and industrial customers.  The transaction has been led by founding shareholders Whitehelm (acting on behalf of Australian superannuation fund Prime Super) for SAE, and Kvitebjørn Energi AS (an industrial investment company controlled by Daimyo) for BIOEL. The shareholders are committed to continuing to strengthen the operational capabilities of the merged business, as well as providing access to capital for the further domestic and international expansion of the platform.

“Waste-to-energy plants with efficient heat recovery systems and high energy utilization like SAE and BIOEL are key treatment facilities for municipal solid waste in Europe and major contributors to the reduction of the climate impacts of modern waste management” said Matteo Andreoletti, Head of Infrastructure Equity, Europe and North America, at Whitehelm Capital. “We are delighted to extend our cooperation with Daimyo, following a successful joint venture in Kvitebjørn Varme AS, the district heating company in the city of Tromsø.”

“The creation of SAREN Energy continues Whitehelm’s long history of successfully partnering with regional infrastructure to unlock efficiencies and promote sustainable economic growth. Whitehelm Capital has to date invested €2.6 billion in Europe in seven different countries.  We continue to see excellent investment opportunities within mid-market infrastructure, particularly in sectors supporting the energy transition.”

Anders Ombustvedt, chairman of Kvitebjørn Energi and a Partner at Daimyo, said “We are pleased by the improvement made by the operator FREVAR KF and our excellent team under leadership by Rune Dirdal since our purchase. We are thrilled by the structural and operational possibilities that have become available with the merger; we can create even better offerings for new and existing customers. The creation of SAREN Energy is consistent with our long-term industrial plan for the plant and strategy to remove bottlenecks in the regional waste and heat markets. This transaction enables the creation of an energy recovery business with scale, providing the best possible service to local communities under an efficient and environmentally conscious organization.”

Whitehelm and Daimyo were advised by DNB Markets.

About Daimyo

Daimyo is a privately owned Norwegian investment company with interests in sustainable businesses, real estate and financial investments.  Since incorporation in 2003 the company has actively developed businesses with emphasis on strategy, operations, financing and sustainability. Daimyo is a proud owner or majority owner of assets with a gross value in excess of €500m.

For more information, visit: www.daimyo.no

About Energos 

The Energos technology utilized by SAE is a world leading, Norwegian developed gasification technology for small-scale energy from waste plants.  The technology is owned by Daimyo, through their subsidiary Energos Group.

For more information, visit: www.energos.com