Fortum to sell Oslo district heating stake for approximately EUR 1 billion
Fortum has agreed to sell its 50% ownership in the Norwegian district heating company Fortum Oslo Varme to an investor consortium for approximately EUR 1 billion. The transaction is subject to regulatory approvals.
Fortum Oyj announced it has signed an agreement to sell its 50% stake in Fortum Oslo Varme AS, a Norwegian district heating company, to an investor consortium including Hafslund Eco, Infranode, and HitecVision. The sale price for Fortum's share is approximately EUR 1 billion (NOK 10 billion).
Fortum Oslo Varme is Norway's largest district heating provider, supplying 1.8 TWh of district heating and 0.1 TWh of electricity in 2021. The company operates Norway's largest waste-to-energy plant in Klemetsrud, Oslo. The transaction is expected to close in the second quarter of 2022, pending approvals from the Oslo City Council and regulatory bodies.
This divestment is part of Fortum's strategy to divest several of its heating and cooling businesses. Fortum acquired its stake in Fortum Oslo Varme in 2017. Fortum CEO Markus Rauramo stated that the decision to sell was made after careful consideration and is considered to be in the best interest of Fortum Oslo Varme's continued development under new ownership.
Hafslund Eco CEO Finn Bjørn Ruyter commented that Fortum Oslo Varme's operations align well with Hafslund Eco's portfolio of renewable energy and infrastructure. He believes the combination will create opportunities for sustainable growth by leveraging the combined expertise of the companies.