Cloudberry Clean Energy Annual report 2020

Cloudberry Annual report 2020 Sustainability 52 Our activities During 2020, we supplied 21 GWh of renewable power in Norway. Our producing assets consist of Finnesetbekken hydro plant, Røyrmyra wind farm and 14 hydropower plants in the Forte portfolio, where Cloudberry is a local manager and owns 34% of the portfolio together with Forte Norway AS (associated company with Fontavis, a member of Swiss Life). During 2020 Cloudberry had the following hydro plant assets under construction: Bjørgelva (acquisition 2019), Nessakraft (acquisition 2019), Åmotsfoss (acquisition 2020) and three more hydro plants bought in 2020 and to be financially closed during 2021. Odal wind park is currently being constructed in association with KLP (Norwegian pension fund) and Akershus Energi. Under 2020 Cloudberry has the following projects under development: Rewind Vanern AB is a shallow water project in the lake of Vänern where Cloudberry signed a Sale and Purchase Agreement (“SPA”) with Downing LLP in January 2021, Hån wind park with expected pro- duction start in 2022 and Duvhällen wind park with expected production start in 2023. At the end of 2020, Cloudberry signed a SPA to purchase the producing hydropower plant Selselva Kraft AS, and the acquisition was formalized at the beginning of 2021. Furthermore, Cloudberry purchased Scanergy AS and CB Nordic Renewable & Infrastructure Fund I AS in 2020, and the industrial wind developer Skogvind AS. As a result, the annual production will increase considerably in 2021, following acquisitions made during 2020, as well as completion of power plants under construction. Way forward We will continue to develop our portfolio and ensure timely and safe completion of projects. We will deliver our communicated growth on renewable energy supply and contribute to provide clean renewable energy for future generations. Cloudberry sees many opportunities for possible further development of renewable projects and acquisitions of existing energy plants. In line with our business strategy, we continue to develop and grow, with focus on organic development and acquisitions of assets. Through Cloudberry stra- tegic initiatives, we are contributing to the European energy transition and a net zero emission society. Sustainable Finance Our approach In order to ensure that we meet our ambitions, Cloudberry has built a robust, financial platform for sustainable growth. By 2040, we expect a 40% increase in Nordic power consumption, largely due to electrification of energy intensive industries and data center expansion. The ambitious climate goals in the Nordics and the EU will drive a transition from fossil fuels to renewable energy. Combined with higher expected power prices for 2021 and beyond, this is likely to provide supportive fundamentals for value creation and long-term cash generation in the company. We seek to have an optimised capital structure, tak- ing both return and risk into consideration. We have several long-term alternatives available for financing, depending on project size, transaction type and counterparty, including existing cash and cash flow generation, green bond financing, and farm down and carry arrangements, share consideration and new equity. Our activities In 2020 Cloudberry carried out three successful private placements. NOK 158 million in March related to the listing on Euronext Growth, NOK 200 million in July and NOK 500 million in December to finance specific growth opportunities. See detailed infor- mation in the governance section and in Group Financial Statement note 22. On lending and financing of local projects we have during 2020 prioritized to have cooperation with local or regional financial institutions. We refer to the Group Financial Statement with notes for further information. Way forward Cloudberry has delivered on its targets in 2020 and has carried out several transactions since the company listed on Euronext Growth in April. The company has ambitions to further growth organ- ically and through acquisitions. To reach a wider shareholder base and to contribute to making investments in renewable energy available to all stakeholders, Cloudberry has initiated a process to prepare for listing on the Oslo Børs Stock Exchange