Novo Holdings joins partnership to contribute to green energy in Denmark and Sweden
April 6, 2021
Novo Holdings, Sampension and European Energy are establishing a new partnership to boost the green transition in Denmark and Sweden. The new partnership will have a starting capital of DKK 650 million (approx. EUR 87 million) and the partnership’s intention is to purchase land for renewable energy. Using debt financing, the partnership can make investments of more than DKK 1.5 billion (approx. EUR 200 million) into the fund.
A new partnership between Novo Holdings, Sampension and European Energy has been established with the intention to buy land for the construction of solar and wind farms in Denmark and Sweden. The three partners will provide DKK 650 million (approx. EUR 87 million) with the possibility of investments of up to DKK 1.5 billion (approx. EUR 200 million) through debt financing. This will significantly increase investments in the green transition in Denmark and Sweden. European Energy will handle the development of the solar and wind farms on the acquired areas.
The new partnership will purchase agricultural land that is suitable for renewable energy plants. Furthermore, the partnership will explore opportunities to combine food production and energy production as well as convert lowland soils to green energy production. This can lead to both increased biodiversity in the areas and be a double benefit for the climate if more CO2 is bound in the low-lying soils, at the same time as the green energy is established on earth.
The partners expect the collaboration to contribute to Denmark getting one step closer to the ambitions in the Danish Climate Act, where greenhouse gas emissions are reduced by 70% in 2030. In addition, conversion of agricultural land to renewable energy production will strengthen the conditions for achieving cleaner groundwater.
– Investments outside the life sciences sector are an important element in the diversification of Novo Holding’s investment portfolio. Partnerships with leading players such as European Energy are in line with our strategic focus on infrastructure. We expect the investment to deliver a good risk-adjusted return, just as it has the additional advantage that it contributes positively to the green transition. We look forward to working with European Energy, and we expect to make more similar investments in the coming years, says Morten Beck Jørgensen, Managing Partner at Novo Capital Investors, Novo Holdings.
Sampension also sees good opportunities in the partnership:
– With this new partnership, we are helping to lay a foundation for further development of solar and wind farms in Denmark and Sweden, while at the same time ensuring our customers a good return on investment on the land areas. We want to contribute to an increased green transition on a responsible basis when we invest on behalf of pension customers, and we look forward to the collaboration with both Novo Holdings and European Energy, which already handles the operation of our wind farms, says Henrik Olejasz Larsen, CIO at Sampension.
European Energy, which is responsible for the establishment of the new renewable energy farms from the acquired land areas, states:
– We are very pleased with the collaboration with Novo Holdings and Sampension. They are two highly professional partners with an in-depth knowledge and experience of investments in renewable energy and are both long-term investors, with an understanding of and desire for the investments to be made considering local stakeholders and with strong local support. If we are to achieve our green ambitions as early as 2030, it is important that the expansion of green energy production is accelerated, and this partnership is a major step in the right direction, which on market terms contributes to accelerating development of renewable energy, says Knud Erik Andersen, CEO of European Energy.