3 minute read
energy transition
by BAHR
For BAHR’s Energy and Shipping market group, 2020 was the year that truly marked the start of the transition to a low-emission society.
Although many of us will predominantly associate 2020 with the corona virus, Jon Christian Thaulow, Partner and Head of BAHR’s Energy and Shipping market group, will remember 2020 as the year in which Norwegian industry took fully on board what investments are needed to meet the climate targets under the Paris Agreement and the Norwegian Climate Act.
– The key change on our part this year is that much more of our activity has been related to renewable energy. This applies across our portfolio. It is obvious that this is only the beginning of the great transition we are venturing on. This transition to a low-emission society is fundamental and will affect us all, says Thaulow.
Riding the renewables wave
These changes caused a veritable Klondike atmosphere for green companies in the late summer and the autumn of this year. The Oslo Stock Exchange and Merkur Market have experienced a flood of companies seeking a listing to attract capital from investors with an ESG focus, and Oslo is now frequently referred to as Europe’s renewables exchange. This has of course made it a busy time for BAHR’s oil and gas, renewable energy and shipping team.
– There have been many more investments and more of a focus on developing projects in that
Jon Christian Thaulow, BAHR Partner and Head of the firm’s Energy and Shipping market group (on the right), with BAHR Partner and market group colleague Morten P. Smørdal.
direction than ever before. This activity is initiated by traditional market players, including those previously more focused on oil and gas. We have for example noted that some of our major clients, such as HitecVision and the Aker Group, have taken a strong interest in this sector, explains Thaulow.
Thaulow’s team has been very busy, both during the coronavirus lockdown and into the summer holidays, on projects such as the Aker Horizons launch. Aker’s renewables initiative is clearly a «big deal», which has attracted considerable attention after Aker Carbon Capture and Aker Offshore Wind were both spun off from Aker Solutions.
– I must really praise our team members. Many of them put in a truly extraordinary effort over this period – setting aside their summer holiday plans and pulling out all the stops. We were fortunate to be part of the Aker Horizons launch. Aker previously had a carbon capture company called Aker Clean Carbon, which we worked closely with until its activities were merged into Aker Solutions, and it is great to work on the same business again now that it has been spun off anew, says Thaulow.
High level of activity
The development towards more green investment is also observed in the shipping segment, where BAHR recently assisted Østensjø Rederi in its sale of
a 25-percent stake in Edda Wind to Wilhelmsen. BAHR has also advised on a number of the largest power sector transactions in recent years, such as Sognekraft’s sale of half of the Leikanger power plant to Lundin Petroleum, and the HitecVisionowned oil company Sval Energy’s wind power investments in Finland. – These are two prominent examples of transactions in which oil companies are getting involved in renewables projects, says Thaulow.
A major wind power project for the team has been the Øyfjellet Wind Farm, the largest standalone wind power project in Norway. BAHR recently represented the company before the Oslo District Court in preliminary injunction proceedings instituted by the reindeer industry, which is seeking to block the wind power plans. – Øyfjellet has been a major instruction for us. Onshore wind power development does generate controversy. Besides, our numerous transactions with Hafslund Eco after the acquisition in 2017 did in a way draw to a close with the adjudication of the Hafslund ASA compulsory acquisition proceedings this summer, notes Thaulow. Thaulow fully expects the high level of activity in BAHR’s oil and gas, renewable energy and shipping practice to continue.
– Our practice is largely driven by what direction investments are channelled in. The transition to low emissions will require investments on a monumental scale. We have always had a considerable renewable energy, hydropower and infrastructure practice. So this is far from uncharted territory for us, but we most certainly expect a lot more renewables work to come our way, says Thaulow.
