The Netherlands: DNV and KEMA Form Energy Consulting, Testing, and Certification Company

DNV and KEMA form a world-leading energy consulting, testing, and certification company that can drive the worldwide transition towards a safe, reliable, efficient and clean energy eco-system. DNV KEMA Energy and Sustainability will consist of all 1,800 KEMA employees and 500 employees from DNV”s renewable energy and sustainability activities.

The new company will be led by Thijs Aarten, CEO of KEMA, and will be headquartered in Arnhem, the Netherlands. Mr. Aarten will report to a Supervisory Board chaired by DNV CEO Henrik O. Madsen.

“By joining forces, 2,300 experts will meet the needs of an industry in rapid transition and growth. The combination of cleaner fossil-fuel based power generation with increased use of renewables will truly make a global impact. This is the strategic rationale behind DNV’s biggest investment ever, and along with DNV’s other 8000 employees engaged in supporting our maritime, oil and gas, and other customers, makes DNV a leading global player in third party and technical advisory roles, “ says Leif Arne Langøy, Chairman of DNV’s Board of Directors.

 Strategic and cultural match

The activities of KEMA are highly complementary to DNV’s existing renewable energy and sustainability businesses and the two will be integrated into one compelling service offering for the global energy sector. Services will cover the entire energy value chain from energy source to end user, covering wind energy, carbon capture and storage, carbon trading, energy efficiency, power generation, transmission and distribution, and energy related testing, inspection and certification.

The global energy sector is heading for significant changes and investments. The International Energy Agency (IEA) estimates that USD 10 trillion will be spent between 2010 and 2030. Stricter environmental regulations and increased fuel costs will drive a transition towards cleaner fossil fuel and more cost-effective power generation. This transition, including that of integrating more renewable power into the energy grids, will require system-wide changes. In the US, Europe and Asia the shift is already underway and will be partly supported by the introduction of smart grids or intelligent energy networks.

 ”In DNV we find a solid, innovative and international partner that has the same strategic vision, purpose and values as our company. For decades, KEMA has been a highly-respected global energy consultant and provider of energy related testing, inspection and certification services. Both KEMA and DNV have strong traditions as independent leading players with world class technical and business knowledge and growth ambitions,” says Thijs Aarten, CEO of KEMA.

Over the past two decades, DNV has become a leading certifier and technical adviser within renewable energy. To fulfill the ambition of really impacting its customers’ transition towards a low carbon economy DNV needs to also provide independent certification and technical advice to the power transmission and distribution sector. KEMA is globally recognized within power generation and transmission and is thus a perfect strategic fit with DNV

”Through organic growth and acquisitions, we have built significant capacity within renewable and cleaner energy, such as wind, solar and carbon capture and storage. In addition, DNV has recently built capabilities within power transmission and distribution, where KEMA is already a global leader. The acquisition of 74.3% of KEMA’s shares is a huge step towards achieving our ambitions, and widens our portfolio, which includes our traditional maritime and oil and gas businesses,” says Henrik O. Madsen, CEO of DNV.

DNV KEMA Energy and Sustainability’s core markets are in Europe, North America and China and will benefit our customers with a broader portfolio of services across the entire energy value chain.

While DNV becomes the majority shareholder with 74.3%, Alliander retains its 25.4% holding as does Cogas (0.3%). The transaction is subject to approval from US, Dutch and German competition authorities.

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Offshore WIND staff, March 07, 2012; Image: DNV