SN Power is to acquire all of the shares of energy commercialization company Enerpar, the Brazilian subsidiary of the Norske Skog Group. The investment is for a consideration of US$75 million. Enerpar owns energy purchase contracts up to the end of 2025 for an average annual value of 1.2 TWh.

The company will continue to offer part of this energy to a Brazilian subsidiary of Norske Skog until 2025 and sell the remainder to other free customers. The investment is expected to close by the end of May.

The acquisition of Enerpar represents the first investment of SN Power in Brazil and consolidates its commitment with the South American region where it already has assets in operation and under construction in Chile and Peru.

SN Power CEO Tor I. Stokke noted that the acquisition of Enerpar marks a very significant event for SN Power, as it is both the company’s first investment into Brazil, as well as its first investment in a pure energy commercialization company. Energy commercialization is a core competence area for SN Power and the company considers the Brazilian energy market to offer excellent opportunities to capitalize on its know-how in this area, said Stokke.

SN Power has set an ambitious growth target to reach 3000 MW of installed capacity by 2015 and Brazil plays an important role in achieving that, noted Stokke. SN Power is pleased to now be established in Brazil and its goal is to become a recognized market player over the next few years, said Stokke.

SN Power is a hydropower development company, operating exclusively in emerging markets. The company is a joint venture between Statkraft and Norfund and has projects and operations in Asia, Latin America and Africa. SN Power is working to develop a portfolio in the range of 3000 MW of hydropower plants by 2015, while combating climate change and contributing to sustainable development.

SN Power has over 5.000 people employed in twelve countries around the globe. It’s headquarter is in Oslo, Norway. As of December 2010, SN Power reported US$1.7 billion in total assets and US$1.3 billion in equity on a consolidated basis.

Norske Skog has 14 wholly and partly-owned mills in 11 countries and is one of the world’s largest producers of publication papers to newspapers, magazines, periodicals and for the advertising purposes. The company created Enerpar in 2008 as a wholly owned subsidiary of the Norske Skog subsidiary in Brazil to provide energy to its operating facilities.