Ancala Partners (‘Ancala’), the independent mid-market infrastructure investment manager, has agreed to acquire a 50% interest in HS Orka, Iceland’s largest private electricity generator, from Jarðvarmi, a consortium of 14 Icelandic pension funds.

Ancala has made the investment on behalf of Ancala Infrastructure Fund II, Ancala’s second mid-market focused infrastructure fund.

The transaction follows Jarðvarmi’s exercise of its right of first refusal to acquire a 53.9% interest in HS Orka from Alterra Power Corp, a subsidiary of Innergex Renewable Energy Inc. Jarðvarmi has also agreed to acquire a 12.7% interest in HS Orka from Fagfjárfestasjóðurinn ORK. The remaining 33.4% in HS Orka was already owned by Jarðvarmi. Following the transactions Ancala and Jarðvarmi will each own 50% of HS Orka.

The price for the acquisition of Alterra’s 53.9% interest was USD 299.9 million. The price for the acquisition of Fagfjárfestasjóðurinn ORK’s 12.7% interest was not disclosed. Ancala’s acquisition from Jarðvarmi has been agreed on the same terms.

Ancala and Jarðvarmi have further agreed to divest HS Orka’s 30% interest in the Blue Lagoon, Iceland’s leading tourist attraction, to Blávarmi. The sale transitions HS Orka into a pure play renewable energy platform.

Lee Mellor, Partner, Ancala Partners, commented: “We are delighted to partner with Jarðvarmi for this investment in HS Orka. Ancala and Jarðvarmi share a common investment philosophy focused on supporting management, providing further capital for growth and adopting a long-term outlook. HS Orka represents a compelling growth platform in Iceland’s exciting renewable energy sector. We look forward to working with Jarðvarmi and HS Orka’s management team.”

David Rudolfsson, Chairman of the Board of Jardvarmi, commented: “Ancala’s renewable energy expertise, joint view on HS Orka’s potential combined with our shared long-term investment outlook make us aligned partners. We look forward to working together with Ancala to continue supporting the growth of HS Orka over the long-term.”

HS Orka has been producing renewable energy for 40 years and operates two geothermal powerplants, Svartsengi and Reykjanes, with a combined installed capacity of 174 MW. The company is also currently constructing a 10 MW hydro powerplant at Bláskógabyggð and is at an advanced stage of development for additional geothermal and hydro capacity. The company is led by CEO, Ásgeir Margeirsson.

Notes to Editors

About Ancala Partners
Ancala Partners (‘Ancala’) is an independent infrastructure investment manager focused on delivering enhanced returns from core mid-market infrastructure investments. It invests in and manages businesses across infrastructure sectors including utilities, energy, transportation, telecommunications and midstream. Ancala adopts a proactive approach to the origination and asset management of investments to create value for its investors.

For more information, please visit


Ancala Partners LLP
Lee Mellor
Tel: +44 (0) 203 440 3518

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