Equinor continues energy transition plan with acquisition of Danish solar developer BeGreen

Norwegian energy company Equinor (NYSE: EQNR) has agreed to buy Denmark-based leading solar developer BeGreen for an undisclosed amount.

Equinor continues to develop its own solar projects in Poland, Brazil and Argentina, but with the acquisition of Bregentved’s BeGreen, will add Denmark, Sweden and Poland to the growing list.

BeGreen has developed, sold and delivered solar PV capacity of more than 700 megawatts to date. It also has projects of varying development stages in Denmark, Sweden and Poland, which average 300MW in size.

Equinor executive vice president for Renewables Pål Eitrheim said the deal was another step towards becoming a “market-driven power producer”.

“BeGreen represents an important building block to our industrial renewables position in Europe, in line with our ambition to be a leading company in the energy transition,” he said.

“BeGreen has a proven track record as a solar developer and a strong project pipeline in attractive power markets.”

Following the completion of the deal, which is subject to regulatory approvals, the Danish solar developer will become a fully owned Equinor subsidiary, which will take charge of developing its solar PV projects.

Meanwhile, Equinor’s subsidiary Danske Commodities will control the commercialisation of BeGreen’s power, drawing on its market presence and expertise to capture opportunities in the market.

BeGreen chief executive officer Anders Dolmer said it was the perfect match for the Danish company.

“Equinor and BeGreen share the same ambition, and we are both aiming for the highest standards for ESG and integrity,” he said.

“With the new ownership, our financial capacity will significantly expand, allowing us to offer even more support to the green transition in Europe.”

The deal will bolster Equinor’s energy transition plan, as the company has prioritised developing onshore renewables and storage positions in Europe through investment in local companies, which include Wento in Poland and Noriker Power in the UK.

Equinor profits reach new heights

Equinor’s record profits posted for the September quarter saw it overtake Russia’s Gazprom as Europe’s top gas supplier, which also cut deliveries due to support for Ukraine.

The company’s record third-quarter profit was driven by all-time highs in European gas prices, which allowed the company to raise its dividend payout.

Equinor raised its dividend to $0.70 per share for the third quarter, up from $0.50 in the second.

The energy producer’s adjusted earnings before tax for the period rose to $24.3 billion, a significant rise on $9.77 billion which was posted a year earlier.

Equinor’s chief executive Anders Opedal said gas prices being at a high led to strong financial results for the company.

“The Russian war in Ukraine has changed the energy markets, reduced energy availability and increased prices,” he said.

“High production combined with continued high price levels resulted in very strong financial results.”

Also, for the quarter, the company’s after tax adjusted earnings were $6.72 billion, but its numbers remain shy of larger European rivals Shell and TotalEnergies, which each reported profits of more than $9 billion.