Hydro sets up NOK 350 million venture fund
Hydro has established the Norsk Hydro Technology Venture fund to invest in energy sector research and development projects implemented outside of the company's own operations.
09Hydro has initially allocated NOK 350 million (USD 40 million) to support such investments during the next four years. The fund will insert capital into companies developing projects deemed of importance to Hydro.
Hydro President and CEO, Egil Myklebust, revealed the decision to set up the fund at a research conference arranged by Hydro in Oslo today.
The development of new technology is a vital element to all of Hydro's business areas. Norsk Hydro Technology Venture will pay particular attention to investments in technological developments impacting the company's energy operations.
The types of technologies given close consideration will include oil exploration and recovery, electricity production with low CO2 emission levels, fuel cells, hydrogen as an energy carrier, and technologies aimed at renewable energy production.
It is intended the fund assist Hydro to take on the role of development partner in those technologies seen to have strategic significance for the company. It is also a prerequisite the fund achieve a rate of return synonymous with that stipulated for Hydro's other businesses.
Jørgen Rostrup, currently financial director for Hydro's oil operations in Norway, has been appointed head of Norsk Hydro Technology Venture.