Norway's Aker takes 75% stake in Ireland's Mainstream Renewable Power

London — Norway's Aker Horizons has agreed to buy a 75% stake in Dublin-based Mainstream Renewable Power for Eur758 million ($918 million), the two companies said Jan. 19.

Mainstream has developed 6.4 GW of renewable capacity through to financial close, selling wind and solar assets on to third parties, including 22% of the UK's offshore wind capacity either in operation or under construction.

The deal would enable Mainstream to accelerate its growth plans, Mainstream CEO Mary Quaney said.

"We plan to bring 5.5 GW of renewable assets to financial close globally by 2023, which sets us firmly on track to becoming one of the world's first pure-play renewable energy majors," Quaney said.

The agreement includes an additional earn-out payment in 2023 of up to Eur100 million to selling shareholders, Aker said.

Existing Mainstream shareholders, led by founder and chairman Dr. Eddie O'Connor, are to retain 25% ownership of the company, with O'Connor continuing as Chairman of Mainstream.

Mainstream's current portfolio includes 1.4 GW in operation or under construction, mainly onshore wind and solar assets in Chile and South Africa. It has 700 MW in advanced development, expected to reach financial close in 2021, and more than 9 GW of other development assets in addition to several offshore wind opportunities, the companies said.

Aker Horizons is Aker's investment platform dedicated to investing in renewable energy and decarbonization technologies. It aims to develop companies with a total capacity of 10 GW and remove the equivalent of 25 million mt/year of CO2 by 2025.

"Through the acquisition of Mainstream, Aker Horizons will gain a platform to drive forward its renewable energy ambitions and position itself in a growing market for hybrid projects," Kristian Røkke, CEO of Aker Horizons, said.

As part of the transaction, Aker Horizons is to acquire a 50% holding in SuperNode, set up by O'Connor in 2018 to develop superconductor cables.

The deal is expected to close in Q2 2021 subject to closing conditions, including regulatory approvals, and approvals from Mainstream's creditors.