Patrizia merges SAREN Energy and Kvitebjørn Varme

The new entity forms one of the largest district heating operators in Norway with an estimated value of €350 million.

  • The entity will support decarbonisation efforts in Norway via carbon capture and storage
  • Patrizia’s ESG strategy is to achieve net zero carbon status across its operations and real assets portfolio by 2040
  • SAREN Energy is owned by institutional clients of Patrizia including Patrizia European Infrastructure Fund II

Patrizia Infrastructure has completed the merger of its portfolio companies SAREN Energy and Kvitebjørn Varme. The new entity forms one of the largest district heating operators in Norway with an estimated value of €350 million.

The entity comprises three energy from waste facilities and a district heating network that will deliver a diverse revenue stream from sales of heat, steam and electricity across Norway.

Oslo-based SAREN Energy is owned by institutional clients of Patrizia, including the Patrizia European Infrastructure Fund II, and is one of the largest district heating operators in Norway. Kvitebjørn Varme is a Tromsø-based district heating operator.

“Through this merger, we are creating one of Norway’s largest district heating companies with a diversified asset base that is well-positioned for future growth,” said Matteo Andreoletti, head of infrastructure equity, Europe and North America at Patrizia. “By combining the assets, we are taking an important step in accelerating our decarbonisation strategy for SAREN Energy through knowledge sharing and cost synergies, while at the same time ensuring that our investors benefit from attractive risk-adjusted returns and favourable market dynamics.”

SAREN Energy was established in 2020 following the merger of Norwegian firms Sarpsborg Avfallsenergi (based in Sarpsborg) and Kvitebjørn Bio-El (based in Fredrikstad). The merger aligns with Augsburg, Germany-headquartered Patrizia’s ESG strategy to achieve net zero carbon status across its operations and real assets portfolio by 2040.

Kvitebjørn Energi, co-shareholder in Kvitebjørn Varme, has sold down part of its shareholding as part of the merger. It will retain a minority stake in the combined company.

“Having worked closely with the Patrizia Infrastructure team since they co-invested in Kvitebjørn Varme in 2018, this merger is an exciting milestone in the creation of a platform that can produce even more reliable and low carbon energy for customers,” said Anders Ombustvedt, chairman of Kvitebjørn Energi.