A new industrial partnership of Hafslund Eco, Infranode and Hitecvision has entered into an agreement with Fortum to buy Fortum's 50 percent stake in Fortum Oslo Varme for NOK 10 billion (approx 1 billion euro's). The partnership has a goal of realizing the project for carbon capture (CCS) at Klemetsrud. The transaction values Fortum Oslo Varme at around NOK 20 billion (approx 2 billion euro's). Fortum Oslo Varme is Norway's largest producer of district heating, and last year produced 36 per cent of the district heating used on a national basis. Part of the district heating is from the STACK infrastructure data center's waste heat.
Oslo Municipality majority owner by proxy
Before the transaction, Oslo Municipality owned 50 percent of the company, and Fortum 50 percent. Since Hafslund Eco is also fully owned by Oslo Municipality, and as part of the transaction, Oslo Municipality's ownership interest will be transferred to Hafslund Eco, Oslo Municipality is majority owner by proxy, since Hafslund Eco will own 60 per cent of the district heating player making it the majority owner of the new company, while Infranode and Hitecvision owning 20 per cent each, according to the stock exchange announcement.
"We have worked for a long time to find a solution that finances carbon capture at Klemetsrud. Together with Hafslund Eco and our new partners, the City of Oslo is now ensuring that carbon capture at Klemetsrud becomes a reality from 2026" says Raymond Johansen (Labor Party), City Councilor in Oslo in a press release. Oslo Municipality and the companies are now investing up to NOK 6 billion in the project. The state has committed to three billion.
EU declined partly financing the project
Fortum Oslo Varme currently produces 1.7 terawatt hours (TWh) of district heating, corresponding to around 20 per cent of Oslo's heating needs. The ambition has been to expand to just over two TWh. They own a number of district heating plants in Oslo, including the plant at Klemetsrud, which aims to become the world's first of its kind with full-scale carbon capture (CCS). The stock exchange announcement states that the new owners' goal is to realize this project, which has been in danger after the EU has so far said no to part-financing the project.