Aker Horizons ASA: Third-quarter results 2021

Aker Horizons ASA (the “Company” or “Aker Horizons”) today released its third-quarter results for 2021, and announces a series of transactions and initiatives:

• Aker Horizons to establish green industry in Northern Norway – reached agreement with the municipality of Narvik to acquire land for the development of power-intensive green industries
• Narvik region offers several benefits as Aker Horizons’ hub for activity 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
• Aker Horizons is in advanced discussions with a leading global financial services provider as potential anchor investor in a EUR 1 billion fund focused on infrastructure assets related to carbon capture, hydrogen and electrification
• Net Asset Value ended at NOK 16.1 billion in the third quarter, compared with NOK 15.6 billion at the end of the second quarter and NOK 12.8 billion at time of listing on February 1, 2021

“Aker Horizons contributes to reaching net zero by developing industrial-scale green value chains. Our dual mandate to maximize positive environmental impact and create shareholder value is empowered by industrial capabilities, scale and access to attractive financing. The initiatives announced today, including the establishment of green industries in Northern Norway and progress made towards launching an Energy Transition Fund, will expand Aker Horizons’ industrial footprint and access to long-term capital. The progress made in our portfolio companies and projects during the last quarter gives me confidence that we are on the right track to reach our goals and contribute toward collectively solving the climate challenge,” said Kristian Røkke, CEO of Aker Horizons.  

Third-quarter highlights

During the third quarter, Aker Horizons recorded industrial progress across the group as the portfolio companies continued to mature key renewable energy and decarbonization projects. Mainstream Renewable Power launched a new 1 GW hybrid wind and solar platform in Chile, with a long-term bilateral private PPA signed with a strategic partner. Aker Offshore Wind was selected as preferred bidder in a floating offshore wind project in Japan together with Mainstream. Aker Clean Hydrogen launched Hegra together with Yara and Statkraft to develop a green ammonia facility removing 800,000 mtpa CO₂. Aker Carbon Capture signed an MoU with Carbonor to collaborate on the production of low-emission char with Carbon Capture as a Service (CCaaS).

During the quarter, Aker Carbon Capture also raised NOK 840 million in a private placement. After the end of the quarter, Aker Horizons raised NOK 1 billion from selling shares in Aker Carbon Capture to Baillie Gifford Overseas Limited and other institutional investors. Following the sale, Aker Horizons owns 42.33 percent of Aker Carbon Capture.

The Aker Horizons share was included in the OSEBX index from September 17, 2021.

Aker Horizons’ Net Asset Value (NAV) amounted to NOK 16.1 billion at the end of the third quarter, compared with NOK 15.6 billion at the end of the second quarter and NOK 12.8 billion when the company made its market debut on February 1, 2021.

Developing green value chains

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. The Company 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. 

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.

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.

See separate release for further details.

Targeting to establish an Energy Transition Fund

Aker Horizons has matured the Green Yield concept announced at the second quarter and is now in advanced discussions with a leading global financial services provider as a potential anchor investor for a EUR 1 billion Energy Transition Fund managed by Aker Horizons. The inaugural fund will focus on infrastructure assets related to carbon capture, hydrogen and electrification.

Asset management for planet-positive investing has been identified as a potential new business segment. With Aker Horizons’ access to projects, industrial capabilities and technology, the Company is positioned to generate attractive investment opportunities for institutional investors. Potential benefits for Aker Horizons include the ability to scale positive environmental impact, access to long-term committed capital for projects, and value creation through a fee-based business model.

ENDS

Investor presentation and webcast

The Q3 presentation is attached and can be downloaded on akerhorizons.com.

Aker Horizons will present third-quarter results on October 26, 2021 at CET 09:30. The presentation will be broadcast as a webcast on the following link:

https://channel.royalcast.com/hegnarmedia/#!/hegnarmedia/20211026_3

For further information, please contact:

Ivar Simensen, Communications, Tel: +47 46 40 23 17, ivar.simensen@akerhorizons.com

Christian Yggeseth, Investor Relations, Tel: +47 915 10 000, christian.yggeseth@akerhorizons.com

About Aker Horizons

Aker Horizons ASA is a planet-positive investment company dedicated to developing companies within renewable energy and other technologies that reduce emissions or promote sustainable living. The company is listed on the Oslo Stock Exchange and majority-owned by Aker ASA. Aker Horizons’ investment portfolio includes in Aker Clean Hydrogen, Aker Offshore Wind, Aker Carbon Capture and Mainstream Renewable Power.  

This information is subject to the disclosure requirements pursuant to Section 5-12 the Norwegian Securities Trading Act.