Magnora decides to invest in wind power
Norwegian investment company Magnora has determined that the global zeitgeist favours renewable energy and has decided to invest accordingly.
Announcing the news in a press release, Executive Chairman Torstein Sanness remarked, “New renewable energy is, in many markets, far more competitive than traditional sources of energy.
“Europe is facing an extremely large investment growth this decade within ‘green’ electricity production. Magnora will participate in this exciting journey during the years to come.”
Following in the wake of the European Green Deal, which aims to make the continent carbon-neutral by 2050, Magnora’s decision to refocus its efforts from fossil fuels to renewable energy investment is timely and likely to be a great benefit.
Investing in the future
With some estimating that developing countries will need to spend US$11trn in order to have all electricity come from renewable sources, Magnora’s assessment of the investment potential of sustainable energy appears to be validated.
Shortly after announcing its intention to pursue renewable energy, the company announced that it had bought a 25% stake in Vindr Group, a recent wind power project currently in development, with the option to purchase an additional 25%.
Regarding this, Sanness said that it “marks our first building block in our co-development strategy for small and medium-sized wind parks in the Nordic region.
“Vindr Group has a novel and efficient methodology that fits the market segments it targets. The Vindr team has a compelling business plan with clear growth ambitions supported by its team’s experience and approach.”
Intimating that further, small-scale projects are in the pipeline - smaller because Magnora considers large-scale projects to be less economically viable - the company stated that it was confident in its new direction.
Theis H. Pedersen, Head of Business Development, stated that “For Norwegian wind developers, Magnora can offer a different financial solution given the OSE stock market listing.
“I am convinced that Magnora will play an important role in the renewable business segment in the years to come.”
Drax advances biomass strategy with Pinnacle acquisition
The Group’s enlarged supply chain will have access to 4.9 million tonnes of operational capacity from 2022. Of this total, 2.9 million tonnes are available for Drax’s self-supply requirements in 2022, which will rise to 3.4 million tonnes in 2027.
The £424 million acquisition of the Canadian biomass pellet producer supports Drax' ambition to be carbon negative by 2030, using bioenergy with carbon capture and storage (BECCS) and will make a "significant contribution" in the UK cutting emissions by 78% by 2035 (click here).
This summer Drax will undertake maintenance on its CfD(2) biomass unit, including a high-pressure turbine upgrade to reduce maintenance costs and improve thermal efficiency, contributing to lower generation costs for Drax Power Station.
In March, Drax secured Capacity Market agreements for its hydro and pumped storage assets worth around £10 million for delivery October 2024-September 2025.
The limitations on BECCS are not technology but supply, with every gigatonne of CO2 stored per year requiring approximately 30-40 million hectares of BECCS feedstock, according to the Global CCS Institute. Nonetheless, BECCS should be seen as an essential complement to the required, wide-scale deployment of CCS to meet climate change targets, it concludes.