Release by Scatec raises USD 102 million to accelerate growth ambitions

Oslo 19 July 2023: Release by Scatec (“Release”) signed an agreement to raise USD 102 million (NOK 1 billion) in funding from Climate Fund Managers (“CFM”) to further accelerate its growth ambitions. Release was established by Scatec ASA (“Scatec”) in 2019 to offer a flexible leasing solution of pre-assembled and modular solar and battery equipment for the mining and utilities market.

CFM is a leading climate-centric blended finance fund manager backed by FMO, the Dutch Development Bank, and Sanlam Infraworks, part of the Sanlam Group of South Africa. The company invested in Release via its Climate Investor One (CIO) fund; a blended finance vehicle focused on renewable energy infrastructure in emerging markets. CFM will contribute USD 55 million in equity for a 32% stake in Release. Scatec, a renewable energy frontrunner in emerging markets, will retain the majority shareholding of 68%. CFM will also provide shareholder loans totalling USD 47 million, part of which will be on concessional terms.

“We are very excited to have Climate Fund Managers join us as a partner to accelerate the significant growth potential of the Release platform. Scatec is establishing a strong partnership and has raised external financing through a value accretive transaction to fund Release’s growth ambitions. Release is offering a unique renewable energy solution in a rapidly growing market segment that requires a different business model than Scatec’s larger scale project business,” says Scatec CEO, Terje Pilskog, who is also the Chair of Release.

“Today’s transaction establishes Release as a strong and independent company while Scatec remains the main shareholder and offers services to support Release and drive synergies in the next phase of the company’s development,” adds Pilskog.

Release is experiencing good traction in the market, particularly towards African utilities. It has projects in operation and under construction in Cameroon, South-Africa, Mexico, and South-Sudan with a total capacity of 47 MW solar PV and 20 MWh of battery storage and has additional contracts for 35 MW solar PV and 20 MWh of storage in Chad, in addition to maturing its advanced pipeline. Release intends to replicate its rapid deployment model to address shortfalls in local grid power supplies throughout the region.