SEB Nordic Energy - Investor Update
SEB Nordic Energy – Investor Update in English with the portfolio managers Richard Gavel & Elin Löfblad, June 2024.
SEB Nordic Energy
A renewable energy fund enabling energy transition.
Note that some of our funds are only for distribution in Sweden and some of the alternative funds are not available to non-professional investors. Past performance is not indicative of future results. The value of fund units/shares can rise as well as fall significantly and you may not get back the amount invested.
SEB Nordic Energy is focusing solely on direct investments in renewable energy infrastructure assets in the Nordics.
Investments will be made in geothermal energy systems, hydropower plants, solar energy, wind energy and cogeneration/combined heat and power and energy efficiency, both through new construction and by upgrading existing facilities to increase efficiency and energy output. The fund is open for institutional investors with an investment horizon of more than 15 years and will be closed-end.
SEB Nordic Energy launched in April 2023
Interview with Elin Löfblad, portföljförvaltare och Nicklas Sörensen, vd, Locus Energy.
New SEB fund invests in small-scale, renewable energy production
To reduce energy shortage and accelerate transformation.
SEB Nordic Energy in short
- Direct investments in renewable energy assets in the Nordics.
- The fund is classified under EU Sustainable Finance Disclosure Regulation as an Article 9 fund, a fund that has sustainable investment as its objective.
- 15-year investment horizon.
- Targeted size (equity): SEK 15bn (within 5 years).
SEB Nordic Energy was created to enable an accelerated transformation of the energy sector by acquiring, developing and integrating small - to mid-scale energy assets into larger portfolios and investing in new technology to increase energy output as well as to meet modern ESG standards and environmental requirements.
Small - to mid-scale local assets for green energy generation have a key role to play in a successful transformation of today’s Nordic energy landscape into a more sustainable, resilient, and efficient energy system that can deliver more power and thereby enable the needed electrification of industry and transportation ty.
Already today, these assets represent a significant part of the energy production in the Nordic countries. The fund offers an attractive risk-return proposition, inflation protection, low volatility and long-term alternative investment opportunity.
Renewable energy asset investments in focus
Focusing on the Nordic region, investments will be both in weather dependent energy, that is solar and wind power, plannable energy production, that is hydropower, and necessary infrastructure, that is local grids needed to enable power production and transfer.
Outside of its main strategy, the Sub-Fund may opportunistically invest up to thirty per cent (30%) of its assets into other energy investments, that is energy storage systems.
Investment opportunities are sourced across energy sources and energy solutions
Geothermal heating
Develop energy systems for properties that will be leased to the property owners.
Solar power
Investments in solar energy, both dedicated solar parks and rooftop installations.
Hydro power
Investments in existing hydropower facilities that will be upgraded by the fund.
Wind power
Investments in existing wind power sites that will be upgraded by the fund.
Combined heat & power
Investments in existing combined heat and power plants with potential for increased power generation.
Energy efficiency
Investments in energy efficiency projects and emission reduction measures.
Why invest in the SEB Nordic Energy?
- Get exposure to renewable energy infrastructure assets in the Nordic countries through a well-diversified portfolio of investments.
- Get access to small/ mid-sized assets that typically are not in focus for larger infrastructure funds.
- Help alleviate the energy shortage in Northern Europe – the fund will invest in local new energy production and in upgrading older energy plants to increase energy output.
- Increasing energy demand, combined with energy shortage and fossil fuels being phased out, calls for large investments in renewable energy. There is therefore an opportunity for investors to contribute with their capital to finance, as well as to gain exposure to, the renewable energy transition.
- Investors will fulfil the local need for financing and knowledge transfer to local municipalities and companies, to accelerate the transition to a renewable energy-based society.
Transition in numbers - how we measure our progress in the fund
ESG matters is an integral part of the fund’s strategy. All investments will have a purpose of increasing the amount of renewable energy in the Nordic region, whether if it’s establishing a new solar park, to acquire and upgrade a hydropower plant to increase its energy output, or to invest in a grid to enable the transfer of green energy.
The fund is classified as an article 9 fund (a fund having sustainable investments as its objective according to the SFDR regulation issued by the EU fund according to the SFDR regulation issued by the EU, with sustainable investments as its objective), investing in companies aiming to solve the global climate challenges.
The fund will measure the amount of renewable energy created by its investments in order to secure that its targets are met. The fund will report according to the EU Taxonomy.
Furthermore, the fund will contribute to SEB Investment Management’s overarching aim to align investments with the Paris Climate Agreement and to reach net zero greenhouse gas emissions from its investments by 2040.
Our strategic partners
Norwegian Asplan Viak fulfils the same role as Greenergy on the Norwegian market, but all projects are coordinated by Greenergy on a Nordic level.
The Finnish company Granlund fulfils the same role as Greenergy on the Finnish market, but all projects are coordinated by Greenergy on a Nordic level.
Greenergy is a Subsidiary to the technical consultancy company Bengt Dahlgren AB. This company assists the fund in building local renewable energy for property owners, municipalities and industries in the Nordics. Greenergy holds the overall commitment from project idea to construction, operation and management, and focuses on geothermal energy, solar energy, hydrogen and thermal power. In exchange, the customer commits to buying the energy produced at a predictable price that includes investment cost and operation.
Rison Capital is a Swedish climate technology financing company. They offer a comprehensive rental solution for their clients’ entire portfolios of energy efficiency and emission reduction measures. Contracts often include, but are not necessarily limited to, LED lighting, heating, ventilation, electrification and other on-site renewable energy solutions. Bundling many projects, regardless of size, number and technology, into one single contract offers clients a practical and quick solution for their transition to climate neutrality.
Contacts
Richard Gavel
Portfolio Manager, Real Estate & Infrastructure
SEB Asset Management
richard.gavel@seb.se
Elin Löfblad
Portfolio Manager, Real Estate & Infrastructure
SEB Asset Management
elin.lofblad@seb.se
Håkan Brodin
Institutional Sales
SEB Asset Management
hakan.brodin@seb.se
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