Hydro Rein

Hydro Rein. It is a dedicated renewable energy company established by the global aluminium and renewable energy firm Norsk Hydro. The company focuses on developing, owning, and operating large-scale wind power, solar power, and battery storage projects, primarily to supply green power to industrial clients and support the decarbonization of energy-intensive industries. Headquartered in Oslo, its operations are strategically centered in the Nordic countries and Brazil, leveraging its parent company's deep industrial expertise and commitment to sustainability.

Overview

Hydro Rein was launched as a separate entity within the Norsk Hydro group to accelerate the industrial transition to renewable energy. Its core mission is to secure long-term, cost-competitive green power for Hydro's own smelters and other heavy industrial players, thereby reducing reliance on fossil fuels and mitigating carbon emissions. The company operates across the entire value chain, from early-stage development and financing to construction and long-term operation of assets. This integrated approach is designed to de-risk investments and ensure a stable supply of clean energy in volatile markets, aligning with global initiatives like the Paris Agreement and corporate ESG targets.

History and development

The formation of Hydro Rein was announced in February 2021, marking a strategic intensification of Norsk Hydro's century-long involvement in renewable energy production, which historically included extensive hydropower assets in Norway. This move was a direct response to growing market demand for green aluminium and the need to decarbonize industrial processes to meet climate goals. The company was built upon the existing renewable energy portfolio and expertise within Hydro Energy, a division managing over 4 gigawatts of capacity, primarily in hydropower and wind power in the Nordic region and Brazil. Its establishment followed major corporate decisions, such as Hydro's divestment from oil and gas assets in the 2000s and its increased focus on sustainability, positioning it as a key vehicle for executing the parent company's strategy outlined in its Hydro 2025 roadmap.

Projects and operations

Hydro Rein's portfolio is concentrated in two key geographical markets: the Nordic countries and Brazil. In Norway and Sweden, it is developing several onshore wind power projects, such as the Kvitfjell Wind Farm and the Hätkävaara Wind Farm, aimed at supplying industrial PPAs. In Brazil, the company is advancing a significant pipeline of solar power projects, including the large-scale Mendubim Solar Park developed in partnership with Scatec and Equinor, to power alumina refineries and other local industries. A notable project is the Rana Battery in Norway, one of the country's first large-scale battery storage systems, designed to provide grid stability and support further integration of intermittent renewables. These projects often involve complex permitting processes with local authorities like the Norwegian Water Resources and Energy Directorate and require navigating specific regulatory frameworks in each country.

Business model and strategy

The company's business model is centered on offering industrial clients long-term Power Purchase Agreements (PPAs) for renewable energy, providing price certainty and sustainability credentials. It typically retains ownership of the developed assets, ensuring operational control and capturing value over the project's lifetime, which can exceed 25 years. A key strategic pillar is risk management, achieved through a diversified portfolio across technologies (wind, solar, storage) and geographies to balance exposure. Financially, it utilizes a combination of equity from its strong parent Norsk Hydro and project finance debt from institutions like Nordic Investment Bank and DNB ASA. This strategy is designed to achieve scale rapidly, with an ambition to build a project pipeline exceeding 10 gigawatts, thereby strengthening Hydro's position in the growing market for low-carbon industrial products.

Partnerships and collaborations

Hydro Rein actively pursues partnerships to share expertise, risk, and capital. Its collaboration with Scatec on the Mendubim Solar Park is a prime example of a joint development model with other specialized renewable energy developers. The company also works closely with technology providers like Siemens Gamesa for wind turbines and Tesla for battery storage solutions. To secure financing and offtake, it engages with a range of stakeholders, including international banks, institutional investors, and industrial offtakers beyond the Hydro group, such as other metals producers. These collaborations are essential for navigating local markets, as seen in Brazil where partnerships with local firms are crucial for project execution, and for contributing to broader industrial ecosystems focused on the green transition.

Category:Renewable energy companies Category:Companies based in Oslo Category:Companies established in 2021