BORLÄNGE ENERGI FINDS NEW ACTIVE OWNERS FOR ITS PORTFOLIO OF SMALL-SCALE HYDROPOWER STATIONS

SEB Nordic Energy's portfolio company, Locus Energy AB, has acquired AB Borlänge Energi's seven small-scale hydropower stations. With the acquisition, SEB Nordic Energy further strengthens its presence in Dalarna, Sweden, and complements the portfolio of already existing investments in both hydropower and wind power.

The municipal council in Borlänge decided Tuesday June 18 to give Borlänge Energi the authority to divest the company's portfolio of seven small-scale hydropower stations in the municipalities of Borlänge, Säter and Ludvika to Locus Energy AB. The plants have an annual average production of approximately 6.8 GWh and are all located in Grängshammarsån, a tributary of the Dalälven river, in bidding area SE3. It is the fourth transaction that Locus Energy will complete in Dalarna, Sweden, in the spring of 2024 after acquiring Trollberget outside Falun in March, entering into a partnership with Dala Vind in April for the development of Fageråsen's wind farm in Malung-Sälen and earlier in June acquiring a private hydropower portfolio in the Västerdal River, among other places.

"We are very pleased to have been entrusted by Borlänge Energi to take over responsibility for the continued development of this local hydropower portfolio. We see significant opportunities to develop energy production and future-proof the stations to meet new and higher environmental requirements with the right investments." says Niklas Sörensen, CEO of Locus Energy.

"Borlänge Energi has made the assessment that a new owner with cutting-edge expertise in small-scale hydropower and strong long-term investment capacity creates the best conditions to secure Borlänge's small-scale hydropower in the long term for the benefit of Dalarna and the region. We have found such a new active owner with better conditions to develop the business than Borlänge Energi in Locus Energy", says Mats-Erik Olofsson, CEO of Borlänge Energi

"Our investment in Borlänge is a good example of how SEB Nordic Energy can direct institutional capital to local projects that contribute to both reducing energy shortages and accelerating the sustainability transition in Nordic municipalities," says Elin Löfblad, Portfolio Manager, SEB Nordic Energy

A team consisting of Delphi Advokater (legal) and Morris Law (environment) has advised the buyer.

SEB Nordic Energy is a fund that focuses on direct investments in renewable energy infrastructure assets in the Nordic region. Investments are being made in small-scale hydropower, wind power, solar energy and geothermal energy, both through new construction and through upgrading of existing facilities to increase efficiency and energy production. The fund is an open-ended professional investor with an investment horizon of more than 15 years and is a so-called Article 9 fund with sustainable investments as its objective. The fund is managed within the SEB Asset Management division, which offers a full range of asset management and advisory services, including fund management. SEB Nordic Energy | SEB (sebgroup.com)

Locus Energy is a portfolio company of SEB Nordic Energy and invests in assets for sustainable local energy production that can be upgraded with new technology to accelerate development and is currently present through direct investments in 51 Nordic municipalities.

For further information, please contact:

Niklas Sörensen, CEO, Locus Energy, niklas@locus.energy +46 70 268 97 35

Elin Löfblad, Portfolio manager, SEB Nordic Energy, elin.lofblad@seb.se + 46 70 739 29 86