Hydro sells stake in Norwegian power producer

Norsk Hydro plans to sell its 20.86% ntake in northern Norwegian power producer SKS Produksjon to Salten Kraftsamband for NOK1bn.

The sale does not affect Hydro’s ownership of 9.4 TWh of annual power production in Norway.

Hydro’s CFO J?rgen Arentz Rostrup said: “As SKS is located in an area where Hydro has no industrial power consumption and with no synergies to our other power operations, the divestment has no effect on Hydro’s primary aluminium production in Norway.”

SKS Produksjon owns nine power stations in Nordland in the northern part of Norway, with a normal production of 1.8TWh/y. Hydro’s ownership represents about 370GWh of the total production, or about 310GWh when adjusted for quota power.