Aker ASA (Aker) and Aker Horizons ASA (Aker Horizons) are collaborating with Narvik municipality and business partners for the establishment of a hub for green industrial development in Northern Norway.
This morning, Aker Horizons announced a series of initiatives in the Narvik region. As a start, properties and assets have been acquired and investments have been agreed for NOK 290 million. The vision is that Aker Horizons and its portfolio companies through major regional investments will be allowed to develop entire value chains holistically, utilizing their capabilities across industries such as hydrogen and renewable energy, with possibilities to enter new segments like battery production and the green steel value chain.
In addition, Aker via its subsidiary Aker Capital AS has entered into a term sheet agreement with the power company Nordkraft, regarding a NOK 200 million investment in Nordkraft’s data center projects at Kvandal and Fjellbu in Narvik. Pursuant to the term sheet agreement, Aker and Nordkraft will venture the data center projects into Narvik Data, under establishment, for further development. Upon implementation of a final agreement, Aker will own 65 per cent of Narvik Data, while Nordkraft will own 35 per cent. For Aker, this opportunity represents another step in Aker’s increased focus on digital value chains.
“The Narvik region is perfectly positioned to play a major role in the green shift and to create future-oriented jobs. We look forward to exploring and realizing opportunities together with Narvik municipality and business partners,” said Øyvind Eriksen, President and CEO of Aker and Chairman of the Board of Aker Horizons.
Aker Horizons today announces several strategic initiatives in the Narvik region to establish green value chains for power-intensive industries in Northern Norway. Together with the local community, Aker Horizons aims to develop industrial activities that promote the company’s planet-positive investment mission, converting renewable power into green jobs and sustainable export industries.
“We are thrilled to announce our investments and plans for a green industrial hub in Narvik. The region offers several benefits as Aker Horizons’ hub for activities in Northern Norway with access to some of Europe’s lowest priced renewable energy, excellent transportation connections for export including road, rail and port facilities, as well as local communities committed to the energy transition,” said Kristian Røkke, Chief Executive Officer of Aker Horizons.
Aker Narvik, a wholly-owned subsidiary of Aker Horizons, has reached an agreement with the municipality of Narvik to acquire two sites in Ballangsleira and Framneslia for a total consideration of NOK 200 million. Further, Aker Narvik will invest NOK 90 million through a private placement for 75 percent of the shares in Narvik Batteri AS, a company aiming to develop the Hergot site in Narvik for battery production.
Aker Horizons aims to leverage the full potential of the Aker ecosystem, and coordinate and facilitate opportunities for its portfolio companies, other Aker companies, and third parties. Aker Horizons will – together with Narvik municipality – support the local community through initiatives related to science, education and knowledge-sharing.
Aker Horizons is deeply committed to its mission of being a leading investor and industrial developer of planet-positive companies and projects that solve fundamental challenges to sustainable existence. Today’s announcements represent the beginning of major regional investments that will allow Aker Horizons and its portfolio companies to develop entire value chains based on their capabilities across industries such as hydrogen, carbon capture and renewable energy, with possibilities to enter new segments such as battery production.
The next step will be to further prepare and develop the different sites and mature the individual projects together with business partners and authorities toward investment decisions anticipated in 2022.
Narvik – an attractive hub
Narvik is a regional transport hub located more than 200 kilometres north of the Arctic circle, with railway connections to Sweden and Oslo, the E6 and E10 motorways and an all-year ice-free port.
The sites are well suited for industrial development, with different qualities such as the degree of stranded power, access to process water, size, local geography and logistics. Aker Horizons is in close dialogue with companies involved in power-intensive industries as well as local and central grid owners and power companies to develop the opportunities in the region.
Electricity prices in Northern Norway are low in a Northern European context, making the region well positioned for the development of the next generation of power intensive industrial products.
“With Narvik as a future industry and energy hub, we can create in-demand products and green jobs in the region. Since we started to evaluate opportunities in the region, we have been impressed with the capabilities and enthusiasm we have experienced locally. We see great potential to develop these sites and look forward to further collaboration with local authorities and partners,” said Røkke.
Aker ASA, Aker Horizons’ main shareholder, announced separately today that its subsidiary Aker Capital AS has entered into a term sheet agreement with Nordkraft, regarding a NOK 200 million investment in Nordkraft’s data center project at Kvandal in Narvik. For Aker, the newly established company represents another step in Aker’s increased focus on industrial software and technology.
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