Magnora ASA

Environmental & Social Information • Feb 15, 2022

Magnora ASA: Doubling South African project portfolio to 1.7 GW

Magnora ASA: Doubling South African project portfolio to 1.7 GW

15.2.2022 07:00:01 CET | Magnora ASA | Additional regulated information required

to be disclosed under the laws of a member state

15 February 2022 - Magnora ASA (Magnora) is increasing its focus in the South

African solar and wind market by acquiring 92% of the renewable project

development company African Green Ventures (AGV). The remaining 8% will be owned

by AGV management. Simultaneously, Magnora is selling all its shares in Vindr AS

to its founders and discontinues the development of Vindr Group with Vindr AS.

AGV is a project developer within large scale solar PV and onshore wind and has

a good track record of sourcing renewable projects on behalf of various clients.

AGV holds project rights of more than 800 MW wind and solar PV projects after

recently signing land lease option agreements in prime locations to be added to

Magnora's existing portfolio of 850 MW. The acquisition will subsequently bring

Magnora's South African portfolio to a total of approx. 1.7 GW. AGV's goal is to

develop a portfolio of more than 2 GW solar and wind projects in South Africa

while increasing cost efficiency and de-risking through economies of scale.

Operational synergies are expected as AGV already has been responsible for some

of Magnora's development activities in South Africa. As part of the transaction,

Peter Nygren, EVP Strategies in Magnora, will step down from his current

position and become an active owner in AGV, pursuing the opportunities in South

Africa. He will continue in Magnora's team of corporate advisors and in his role

as active owner in Helios Nordic Energy AB.

"We see great opportunities in South Africa, both in the short- and long term,

and we expect increased power consumption due to economic development and green

electrification. AGV's approach to sourcing attractive projects is complementary

to our methods and capabilities, and we look forward to having them as a part of

the Magnora team" says Erik Sneve, CEO of Magnora.

Currently, more than 80% of the energy production in South Africa is from coal

fueled power plants and more than 10,000 MW of the domestic coal energy capacity

is expected to be decommissioned by 2030, increasing to 35,000 MW by 2050. This

makes South Africa an attractive region for solar and wind development together

with storage technologies. According to the Integrated Resource Plan from 2019,

new capacity to be added between 2019 and 2030 includes 14,400 MW onshore wind

and 6,000 MW solar PV, which might increase further to replace decommissioned

coal power plants.

"Magnora is increasing and sharpening its focus on South Africa in light of the

current positive developments in the country, and we are confident that the AGV

organization will prove to be key to develop Magnora South Africa in the coming

years" says Torstein Sanness, Executive Chairman of Magnora.

DISCLOSURE REGULATION

This information is subject to the disclosure requirements pursuant to section

5-12 of the Norwegian Securities Trading Act.

CONTACTS

* Erik Sneve, CEO, email: es at magnoraasa.com

* Torstein Sanness, Executive chairman, email: sanness at sf-nett.no

ABOUT MAGNORA ASA

Magnora ASA (OSE: MGN) has a legacy royalty business that is re-invested in

renewable energy development projects and companies. Magnora's portfolio of

renewable companies consists of Evolar AB, Helios Nordic Energy AB, Kustvind AB,

Magnora Offshore Wind AS, and Magnora South Africa. The company is listed on the

main list on Oslo Stock Exchange under the ticker MGN.

ATTACHMENTS

Download announcement as PDF.pdf -

https://kommunikasjon.ntb.no/ir-files/17847805/1197/1589/Download%20announcement

%20as%20PDF.pdf