Black-to-green Lundin plots new start as European renewables force after $14bn Aker BP deal
Sweden-based oil firm sets out assets, CEO and growth ambitions after massive hydrocarbons disposal
Lundin Energy outlined plans to become a significant European renewables player after disposing of its oil & gas interests and making a new start as a green power group.
Sweden-based Lundin Energy is in the process of selling its hydrocarbons exploration and production operations to Aker BP in a $14bn cash and share deal agreed late last year and due to close in the second quarter.
That will leave Lundin Energy as an all-renewables operation with three assets in the Nordic nations – two wind farms of 132MW and 86MW under development in Finland and Sweden respectively, and a half-share in a 77MW hydropower plant.
Lundin Energy said that will form its starting point as it screens for “further [renewables] opportunities across Europe and in emerging and other technologies”.
Daniel Fitzgerald, CEO designate of the renewables-focused Lundin Energy and chief operating officer of the current company, said: “Lundin Energy’s renewables business will start trading in a very strong position as a fully funded, cash generative, pure play Nordic renewables company.
“Initially debt free and holding three high quality renewables assets in some of the highest priced regions in the Nordics, we have significant capacity to raise capital for acquisitions and growth.”
Fitzgerald added: “We see many opportunities across Europe, within both established and emerging technologies. With our track record in delivering shareholder value, we have all the building blocks needed to create an industry leading company which is well positioned to thrive through the energy transition.”
The new Lundin Energy will start life with $130m cash to build the 86MW Karskruv wind farm in Sweden and expects to be generating free cash flow – and about 600GWh of power annually – by late 2023 when all its projects are operating.
Lundin Energy said of the case: “The company refutes that there are any grounds for allegations of wrongdoing by any of its representatives and will continue to vigorously defend itself.”
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