Good afternoon, and good morning to all joining. Welcome to this fourth quarter presentation. We're pleased with the industrial progress across the group. ACC securing a major FEED contract. Aker Offshore Wind reaching an important milestone in Korea. Aker Clean Hydrogen passing milestones in Aukra and Hegra. Mainstream winning in South Africa. REC forming a new partnership with Hanwha Solutions. We are proud of the progress being made. We took several steps in the quarter to increase available liquidity, summing to NOK 3.4 billion. We've also made progress in diversifying funding sources, including maturing our previously announced Green Yield Initiative and Energy Transition Fund into what is now Aker Asset Management. We have been preparing for capital market volatility. In terms of fundamentals, our target markets continue to improve. The EU ETS price, for instance, has increased to over EUR 90 per ton.
Corporates are pledging to reduce emissions, stimulating demand for clean fuels, for example, and governments and regulators are promoting policies to battle climate change. We're on a one-way street of transforming our energy system to preserve our planet, and herein lies by necessity, value creation opportunities. Turning to specific company updates in Aker Carbon Capture. In a nutshell, Aker Carbon Capture is a pure play CCUS, carbon capture utilization and storage company with proprietary technology developed over 20 years and validated with over 50,000 operating hours and certified for several applications. The core technology uses a mixture of water and organic amine solvents to absorb the CO2 and can be applied to numerous industries, including cement, bio and waste-to-energy, gas to power, and blue hydrogen.
In the quarter, there were several highlights, including the award of a FEED contract for BP's Net Zero Teesside project in the U.K. as part of a consortium including Aker Solutions, Siemens Energy, and Doosan Babcock. This is the world's first commercial scale carbon capture system on a gas to power facility and marks a major step forward for a large scale CCS with a project capacity of up to 2 million tons of CO2 per year. ACC commenced work on the Twence carbon capture project in the Netherlands. Twence converts 1 million tons of waste to energy every year, supplying more than 100,000 people in the Netherlands with heating and electricity.
There are several innovative aspects of this project, including the use of ACC's Just Catch, which will be the first of a kind modular plant for the removal of CO2 from flue gases, and also the reusing of CO2 as a sustainable raw material. The CO2 will be used by greenhouses to enhance plant growth with an aim to also utilize the liquid CO2 for other industries such as chemical and food industries. ACC further progressed the Brevik CCS project, the first carbon capture project at a cement facility worldwide. The project is progressing according to schedule, with the key milestones achieved and all major purchase orders placed. On-site activity is set to pick up in June with the main installation work to take place next year.
In the fourth quarter, ACC was selected by Viridor as a partner for accelerating decarbonization at its waste-to-energy sites in the U.K., with the delivery of five modular JustCatch plants by 2030. Viridor is one of the U.K.'s leading recycling resource and waste management companies, with a stated ambition to become the first net zero waste company by 2040. This has the potential for ACC to contribute with the reduction of 1.5 million tons of CO2 from the five waste energy sites, combined with another two planned bespoke CCUS plants in the Viridor portfolio. Several collaboration agreements have been signed recently related to transportation and storage. Dan-Unity CO2 is the world's first carbon capture and storage-specific shipping entity established by Danish shipping companies Evergas and Navigator Gas.
While Altera Infrastructure and Höegh LNG are global maritime and infrastructure companies providing services in the CCUS value chain, including gaseous and liquid CO2 gathering, purification, liquefaction, transportation, and permanent underground storage of CO2. With both collaborations, the aim is to offer a full value chain approach for CCS by combining ACC's technology with our gas processing and marine transport capabilities. Turning to Aker Offshore Wind. In terms of company strategy, Aker Offshore Wind is a pure play offshore wind developer with a focus on floating offshore wind. The company plans to develop, build, and operate deepwater wind farms and contribute to the production of renewable energy. Key advantages being the industrial knowledge of the Aker group within offshore developments, cooperation with strategic partners, and close cooperation with Principle Power, a floating wind technology company with a proven floater design.
Starting out with the disappointment after quarter end related to Scotland, Aker Offshore Wind did not secure any wind areas in the Scotland lease auction. It would be premature to comment on this in any detail at this stage, but I would say, one, it was a major positive that so much floating offshore wind was awarded, 65% of the auction, both for PPI and possibly for Aker Offshore Wind over time. Two, the Aker Group's track record of establishing local supply chains in Scotland aligns well with the UK and Scottish governments' ambitions to build industrial strength as the offshore wind industry develops. Disappointing nonetheless, but for those of us who have seen failure in the first instance turn to success over time, it's hard not to see opportunities. Moving on.
A key development in the quarter was the progress made in Korea, which we regard to be one of the most attractive markets for floating wind. KF Wind, a joint venture between Ocean Winds and Aker Offshore Wind, obtained its first electric business license from the Ministry of Trade, Industry, and Energy for a capacity of 870 MW. KF Wind expects to receive a second EBL for a capacity of 450 MW. With these licenses, KF Wind is securing exclusive rights to develop floating wind offshore Korea for a total of 1.4 GW. There is no competition for site control after the areas have been allocated in South Korea. However, there is a rigorous qualification process with key requirements to be met.
The project is on track to reach financial close on the first 870 MW in 2024. Moving on to Aker Clean Hydrogen. Aker Clean Hydrogen is an integrated clean hydrogen producer aiming to develop, build, own, and operate hydrogen facilities, both blue and green globally. The company has established a portfolio in Norway and Chile, and is targeting decarbonization of hard-to-abate sectors such as shipping, fertilizer, and steel production. Since last quarter, Aker Clean Hydrogen increased its portfolio of projects and prospects under development by 200 MW to 2 GW, with highlights including completing the feasibility phase of the HEGRA Green Ammonia Project, demonstrating that it's feasible to realize the conversion from gray to green ammonia at the plant at Herøya. This project will reduce CO2 emissions by 800,000 tons annually, making it one of Norway's largest climate initiatives.
Together with Yara and Statkraft as co-development partners, ACH is now preparing for the concept selection phase. Together with Shell and CapeOmega, Aker Clean Hydrogen is developing a large-scale blue hydrogen and ammonia facility at Aukra, using natural gas from the local gas processing plant. The Aukra Hydrogen Hub has passed its first decision gate, proving the project is both technically and commercially viable. Initial estimates show competitive levelized cost of hydrogen, with several export opportunities to Europe. The hydrogen project at Rjukan is well-positioned to be an early industry mover. Aker Clean Hydrogen has secured a competitive agreement for power with Tinn Municipality, and logistic analysis show cost-efficient transport of compressed hydrogen for local industry in eastern Norway.
Securing offtake is critical for a hydrogen producer, and Aker Clean Hydrogen has recently entered into a series of partnerships to enable green fuel offtake in the maritime sector, including joining forces with the global leader in maritime logistics, Kühne+Nagel, to accelerate green container shipping by expanding Kühne+Nagel's existing mass balance and certification system to include green fuels such as hydrogen, ammonia, and methanol. This enables Kühne+Nagel's customers to become carbon neutral by making use of Aker Clean Hydrogen's green fuels. Secondly, setting up a joint venture with shipping group Grieg Edge to establish a one-stop shop for green ammonia in the Arctic. The JV will handle sales and distribution of green ammonia from the green hydrogen and ammonia facility under development in Bardufoss. Finally, Aker Clean Hydrogen recently launched a collaboration with Aker BP to decarbonize their platform supply vessel operations in the North Sea.
Over to Mainstream, handing it over to Mary.
Many thanks, Kristian, and I'm very pleased to present Mainstream's progress during Q4 2021. The final quarter of the year was a period of really very exciting developments for the business, and as you'll see, our key highlights for the quarter span all of our regional platforms, including Latam, Africa, and Asia Pacific, and feature all of our core technologies of solar PV, of onshore, as well as offshore wind. Firstly, I'm really delighted to say that we achieved a major win in South Africa in the quarter, where we were awarded 12 projects, 6 wind and 6 solar PV, under round 5 of South Africa's Renewable Energy Procurement program. This equates to 1.27 GW of capacity, which represents about 49% of the total capacity awarded in the auction in full.
Mainstream has a really strong track record in South Africa's Renewable Energy Procurement Program, and we've already successfully delivered 850 MW of wind and solar capacity since the first round. This quarter in Vietnam, we reached an important milestone for our flagship Phu Quoc Soc Trang offshore wind farm, and the project received its investment registration certificate, or its IRC, from the provincial government of Soc Trang for the phase I , 200 MW of the offshore wind farm. This is, in effect, the final permit for the project and a very important step towards bringing the project towards FID. At the end of November, we successfully raised EUR 90 million in additional equity from our existing shareholder base, including Aker Horizons, which maintained its 75% stake in Mainstream.
Demand from our Irish retail investor base was very strong, and it resulted in an oversubscribed transaction. This funding round will help accelerate our growth ambitions for 2022. During the quarter, I'm also very pleased to say that we completed construction of the first phase of our 1.4 GW Andes Renovables wind and solar platform in Chile. This is our Cóndor portfolio, which is three wind farms and one solar farm with a total capacity of 591 MW. On that portfolio, commissioning is now complete and exporting full power to the grid. Post year-end, just earlier this month, we successfully exited our Chilean joint venture with Actis. The joint venture is called Aela Energía, and we sold it to the Canadian-listed developer Innergex Renewable Energy.
This transaction will generate net proceeds after tax to Mainstream of circa $114 million. I'll take you through these highlights in more detail throughout the presentation. On this next slide, you'll see that we continue to grow our global development pipeline, which now stands at a net 16.6 GW portfolio. In the development phase this quarter, we have added capacity of 390 MW of early stage development projects in South Africa, giving us a total global development pipeline of just under 15 GW of net capacity. In construction, we have 1.28 GW of capacity, which has decreased from the previous quarter as it reflects the Aela Wind Farm in Chile and the West Bakr Wind Farm in Egypt, both achieving full commercial operation certification during the quarter and therefore moving into operations.
Therefore, these two projects increase our operational capacity from a net 0.2 GW in quarter three to a total of 310 MW for quarter four. In addition to this, as I've mentioned previously, we also manage the fleet of 600 MW of operational assets in South Africa for the Lekela joint venture in which we are a partner. The next slide shows our global portfolio, which spans across Latin America, Africa, Asia-Pacific and offshore. I won't dwell on this slide, but you know, as you see down on the left-hand side, you'll see our capacity by technology, which is well balanced between onshore wind and solar PV.
We have been very focused on this technology split, and you'll hear me mention it later on throughout the presentation as we're increasingly developing our projects with a hybrid approach, combining wind and solar technologies, and also focusing on growing our pipeline of offshore wind projects in development. We've been growing the business in terms of pipeline activity and people very significantly in 2021, and we'll be continuing with this level of growth into 2022 and beyond. On to the next slide then, where before I take you through our platform updates, I just want to start by looking at some of the key themes and challenges which are relevant to the global industry at the present time, and to explain how we as Mainstream are actively managing them.
The global industry as a whole is seeing inflation and cost pressures, and these are compounded by supply chain issues, which, if not managed properly, can have an impact on project returns. As quite an experienced global developer of renewable energy, I should point out that these themes are not new to us. We've experienced various cyclical changes over the years of operations. They're part of an ever-evolving landscape of moving parts, you know, which we've shown throughout the years that we have particular experience in managing, and that goes back quite a number of years. So I have two key points on this slide. One is our contracting strategy on both wind and solar, and how that strategy provides protection to cost inflation.
Secondly, I'll explain the timing of securing power purchase agreements, and then how that marries with the timing of signing procurement and construction contracts, which provide protection against cost inflation, and how we've incorporated the same into our bidding strategies. We monitor the industry very closely, and we started to see real cost increases from Q1 2021 onwards. As you can see from the slide, starting over on the left, we secured the Andes power purchase agreements back in 2016, and then the key contracts for this 1.4 GW platform were signed ahead of the current cost environment. As you can see here, Cóndor and Huemul were signed in 2019, and then the final Copihue project at the end of 2020.
The upcoming Humboldt portfolio, which we will bring to financial close in the first half of this year, its PPAs, its power purchase agreements, were secured in 2021, and with the latest cost inflation at that time, incorporated into the PPA pricing. The same applies for South Africa Round 5 that was bid in Q3 of last year, again with cost inflation built into the bidding strategy for the tariffs secured. The other point to make is that in addition to the timing factors, our contracting approach is to fix these costs in our contracts so that we don't bear the risk of rising costs in the period between the signing of the construction contracts and the projects reaching commercial operation. On our wind projects, the turbine supply agreements and the balance of plant agreements entered into to date are fixed price.
Similarly, for solar PV contracts, our contracting strategy has been fully wrapped EPC contracts, so that we as Mainstream are not exposed to fluctuations in solar module pricing, for example. On the next slide then, just looking at some macro factors. Here, I've tried to set out how rising inflation and the macro interest rate environment would impact our portfolio. If we start with the table on the left, which sets out the majority of our PPAs which are fully index linked in either U.S. dollars or to local currency.
Given that our CapEx, as shown on the previous slides, are largely fixed, and that the O&M costs then during operations are really a very low cost base, over the project life cycle, the impact on O&M is very much smaller, so that in general terms, an increase in CPI would equate to a positive impact in returns. In addition to this, you know, considering the interest rate environment, our approach to project finance and to debt raising has been quite prudent. Again, taking the example of our Andes Renovables project finance portfolio, all of that debt is of long tenors of 20 years, and with a very high proportion of the interest rates fully hedged, so up to 95% across the majority of that portfolio.
By way of an example, we have analyzed and quantified what a 1% rise in interest rates would mean to the cost base, and the impact would be on a total debt balance of $1 billion. Our annual interest cost would increase by only $1.26 million annually. The impact would really be quite mild when you consider the overall debt balance there. In summary, you know, these themes are fundamental factors which we have and which we'll continue to incorporate into our contracting, our bidding, and our financing strategies in order to protect our project returns. Moving on then to the next slide, and starting with the LatAm region, where Chile continues to be a key focus for us, as I mentioned.
Our top priority is to bring our portfolio of wind and solar projects, which are now in construction, successfully into operations. Of course, secondly, to win more private and public PPAs during 2022 and to progress our next 1 GW platform. As I mentioned earlier, I'm delighted to report that our Cóndor portfolio, which is the first of the three phases, is on track to reach full commercial operation shortly. The portfolio of 3 wind farms and 1 solar project, these achieved financial close at the end of 2019. Just a few months before the COVID pandemic began. Despite the many challenges encountered in the meantime, all four projects were successfully commissioned 24 months later, by the end of November 2021, and are now exporting full power to the grid.
In terms of the individual assets, the Alena Wind Farm, as I mentioned, received its Commercial Operation Certificate, or COD, in December. The Río Escondido solar farm obtained its COD certificate just a few weeks ago in January. The final two, the Tchamma and Cerro Tigre wind farms, are on track to reach COD shortly. The second phase of the platform, which is called the Huemul portfolio, consists of three wind farms and two solar farms with a total capacity of 630 MW. This portfolio achieved financial close in September 2020, and we're on track to complete construction over the course of this year. Our first Huemul project, Valle Escondido solar farm, was energized this month, and it will export its first power in early March.
With two further projects within the portfolio expected to begin exporting power early in Q2 of this year. They're all well on track and making very solid progress. The final phase, the 148 MW Copihue wind asset, which includes our first private PPA in Chile, that's well on track to reach COD in 2023. In addition to our Andes Renovables platform, we are progressing our 1 GW Nazca platform, which we announced in Q2 of last year. Humboldt, the 300 MW portfolio, is the phase I . It's a hybrid wind, solar, and BESS project with the long-term bilateral PPAs now in place, as I mentioned earlier. This is progressing towards financial close by the middle of this year. Moving on to the next slide then.
At the beginning of this month, we announced the sale of our Chilean joint venture with Actis, called Aela Energía, to Innergex for a total of $686 million. Throughout this process, we saw very strong demand and interest from a wide variety of buyers. The private capital markets, from a demand and valuation point of view, have continued to be very strong. We established this joint venture back in 2013 with Mainstream taking a 40% stake and Actis taking the remaining 60%. The platform comprises three fully operational assets, the Cuel, Sarco, and Aurora wind farms, together with a combined capacity of 332 MW. They were awarded PPAs in public auctions in 2015 and 2016.
Combined, they generate enough clean electricity to power more than 500,000 homes and displace more than 350,000 tons of CO2 per annum. We're really very pleased to have delivered the Aela portfolio as Mainstream from initial project development right through construction through to commercial operation. Building this market-leading renewable energy provider and selling it onwards to Innergex marks the successful conclusion to our involvement with Aela. The planned exit will generate net proceeds after tax to Mainstream of approximately $114 million, and we expect to close the transaction in Q2. Moving on to Africa.
In October, we announced a major win for Mainstream in South Africa, and this win makes Mainstream the leading renewable energy company in the country and the single most successful company in the history of South Africa's Renewable Energy Procurement Program. This win means that we have been awarded, in total, over 2.1 GW of capacity to date under the Renewable Energy Program. This includes 850 MW of wind and solar assets that we have already delivered end-to-end throughout the entire process, from development to bidding to financial close, through construction and into commercial operation across rounds 1, round 3 and round 4 of the program.
Throughout the program, we have achieved a number of firsts, including constructing South Africa's first self-build substation, as well as bringing the first projects to financial close and to complete construction in each of rounds 1, 3 and 4. For this recent win, the 12 wind and solar projects, which have a total capacity of 1.27 GW, they represent just under half of the total allocation of the round, which was the most competitive to date. It was almost 4 x oversubscribed. We targeted a bidding strategy to bid and secure a platform at scale, which I'm very pleased to say was successful. On the next slide, you will see the map which shows the 6 solar projects which are co-located, so therefore they benefit from significant economies of scale.
Similarly, the wind projects, there are two clusters, as you can see, of two projects each, again, benefiting from efficiencies in shared infrastructure and CapEx across the projects. The consortium brings together a range of expertise, led by our fully 100% African team within Mainstream of over 100 professionals based in Cape Town and Johannesburg. Within the consortium, which comprises Globeleq, African Rainbow Energy and Power, H1 Holdings, and local community trusts. At financial close, the ownership of the projects will transfer to the equity consortium, of which Mainstream is a 25% shareholder. We're currently progressing the completion of the development and pre-construction activities. Mainstream will deliver the engineering and construction of the 12 projects as we've done for previous awards.
Looking beyond round 5, we are actively expanding and progressing our development portfolio in South Africa in preparation for future private and public tenders. We are awaiting the round 6 bid date, which is expected to have total capacity for another 1 GW of solar and 1.6 GW of wind projects. Our Pan-African platform, which is called Lekela Power, has over 1 GW gross capacity, either in construction or in operation. We are a minority shareholder within the Lekela joint venture, and we operate the entire fleet of Lekela's operational assets in South Africa. That's over 600 MW across five projects. As with the recent sale of Aela in Chile, our planned exit is underway and financial advisors have been appointed. Phase I of the process for the sale of the entire Lekela Power platform kicked off in December.
Similarly to the Aela process, we're seeing a very strong interest in the platform, and we expect to close the transaction this year. Now moving on to the Asia-Pacific region. Our priority focus here is to bring our flagship solar and offshore wind assets, both located in Vietnam, through to FID. Vietnam's our key market in the region. We identified it and entered it quite early. It being a regional leader in the deployment of renewable energy, and we've been actively developing projects in the market since 2016. Late last year at COP26 in Glasgow, I had the opportunity to meet with the Vietnamese Prime Minister and senior ministerial delegation.
You know, I'm very heartened by their continued strong commitment to renewables, which we have seen through their intention to phase out coal by the 2040s and have now set out a net zero target. Today in Vietnam, we have a growth pipeline of 2.3 GW of solar and offshore wind assets in development. In Q4, we achieved a vital step for the Phu Quoc Soc Trang offshore wind farm with the receipt of the decision on investment and investment registration certificate from the provincial government of Soc Trang for the first phase, 200 MW of the offshore wind farm. This is, in effect, the final permit required for the project and an important step towards finalizing the grid connection agreement and then to securing the PPA and tariff on the project, and brings us a significant step closer towards FID.
The project has already completed its wind measurement campaign and other site studies, and the procurement process to secure the wind turbine supplier and other plant contractor is well advanced. This is a joint venture between Mainstream and our Vietnamese partner, the Phu Quoc Group, with Mainstream owning 70% of the assets and the Phu Quoc Group owning the other 30%. On our solar assets, we expect to receive the IRC for our assets located in the Dak Nong province during Q2 of this year, and then to bring the first 100 MW solar project towards FID.
Overall, you know, we continue to see the APAC region as a really very high growth opportunity with renewable energy capacity set to triple by 2050. Outside of Vietnam, we're progressing a number of new market entry opportunities, including Indonesia, where we have opened a regional office in Jakarta and exploring a number of potential opportunities in the market. In the Philippines, we're progressing our lead project, the 90 MW Camarines Sur Wind Farm, and also actively exploring other early-stage opportunities and pipeline additions. On the next slide, I will speak about our market entry into the Japanese offshore market, along with our partner, Aker Offshore Wind.
Mainstream has a very strong track record in development of offshore wind globally, and we are really delighted to be announcing our market entry into Japan, where in Q3 of last year, we announced that we along with Aker Offshore Wind have been selected as preferred bidder to acquire 50% in Progression Energy's 800 MW floating offshore wind farm, and we expect this acquisition to close this quarter. In Ireland, here in our home market, we are seeing progress on the policy side with the passing of the Marine Area Planning Bill through our parliament, which is now awaiting enactment. Ireland has huge offshore wind potential, and we have identified and targeted opportunities for fixed and floating technologies off the east, off the west and south coasts of Ireland.
In the U.K., unfortunately, we started the year on a disappointing note, where we were not successful in securing a site in the ScotWind offshore leasing round along with our partner, Siemens. However, the U.K. continues to be a market in which we have a core presence, in which we have a long track record, and we note that the upcoming Celtic Sea leasing round, for which the Crown Estate has recently increased its capacity from 1 GW - 4 GW in support of the U.K.'s net zero targets. Finally, our U.S. based offshore team is focused on preparing for several offshore auctions, which are expected in the U.S. within the coming years. The Biden administration has targets of 30 GW of operational offshore wind by 2030 and 110 GW by 2050, and these are increasingly underpinned by state targets.
The rounds will be highly competitive, depending on the amount of seabed being awarded for lease and the timing of the states running the various tenders, and that's a dynamic that we will monitor very closely. Onto the next slide. In green hydrogen and Power-to-X, we're progressing a number of opportunities. A number of Mainstream markets are naturally very well-positioned for the hydrogen economy and provide us with competitive advantages in developing large-scale green Power-to-X solutions. As I referred to earlier, Chile has a strong green hydrogen strategy and it targets being a leader in markets with very clear targets and leveraging from its excellent renewable energy resources, its capabilities and synergies with the strong mining industry locally, with you know, domestic as well as export targets. Similarly, South Africa is very well-placed.
Again, excellent low-cost wind and solar resources, high availability of land, and a domestic mining sector with raw materials for the hydrogen economy. You know, these markets play to Mainstream's strengths and our strengths in developing large-scale infrastructure projects in markets in which we already have a leading position and a well-established presence. So you know, we draw on our developer mindset, on the agility that we're known for in the industry, as well as our ability to identify and position opportunities early. We're very well positioned to pursue a number of very interesting developing opportunities across these and other similar markets. To conclude, before I hand back to Kristian, you know, Q4 has been a very strong quarter for us as we have continued to expand with pipeline increases with new market entries.
We have completed construction and commissioning of the four projects within the Cóndor portfolio in Chile, and strong progress on the Huemul portfolio, the next most advanced construction portfolio. In South Africa, we executed a successful bid strategy, being awarded 1.27 GW, the full amount that we bid. I very much look forward to updating you further as we progress during 2022.
Okay, thank you very much, Mary, for that good overview. We couldn't be more pleased with how the partnership with Mainstream is developing and the strategic fit within Aker Horizons. Solar and wind will continue to lead the way for renewable energy as the cheapest source of bulk generation in large parts of the world. Mainstream is a proven development organization, and we're seeing increasing synergies with other parts of Aker Horizons, in particular around Power-to-X, as in Chile. We also see that the private markets continue to show a lot of interest for renewable energy projects, as witnessed by the recent sale of Aela. And by extension, we also see opportunity to attract growth capital from strategic investors at the Mainstream group level, which we will be open-minded towards. With that, it's over to Nanna to walk us through the financials.
Thank you, Kristian. Starting on slide 25. In the quarter, the net asset value increased by approximately NOK 850 million. REC Silicon had a positive quarter with a share price increase of 36% on the back of the announced transaction with Hanwha Solutions coming in as a strategic investor at NOK 20 per share. Aker Carbon Capture, Aker Horizons sold down from 49% - 42% for gross proceeds of NOK 1 billion at NOK 23.8 per share. Positive developments in unlisted assets represents investments made by Aker Horizons in the quarter. In Q4, Aker Horizons invested its pro-rata share of 75% in a EUR 90 million capital raise in Mainstream and invested in sites in Narvik.
The net debt was reduced by approximately NOK 950 million, with proceeds from a capital raise in Aker Horizons of NOK 1 billion, the sell-down of shares in Aker Carbon Capture of NOK 1 billion, partly countered by investments in Mainstream, Aker Narvik, as well as running and interest costs. On slide 26, this shows the key financials of Aker Horizons and holding companies for the fourth quarter. We reported an EBITDA of -NOK 48 million in Q4. This is reflecting general overhead and project activity. The net profit of NOK 22 million also reflects value change in our listed portfolio shareholdings and other financial items, mainly being interest costs. Cash flow from operating activities was -NOK 66 million, consisting of running costs and interest paid.
The drivers of investing activities are mainly the Aker Horizons investments into Mainstream and Aker Narvik, as well as the proceeds from the sale of shares in Aker Carbon Capture. On financing activities, Aker Horizons fully repaid the drawn amount on the RCF in the quarter and also raised NOK 1 billion in a private placement. Slide 28 gives an overview of our current financing facilities. We have four sources of debt financing. We have a subordinated shareholder loan of NOK 2 billion. This carries an interest of 6% plus a 1% deferral fee and matures in 2026. We have a subordinated convertible bond carrying a 1.5 payment-in-kind interest. It has a conversion price of 43.75 NOK per share, also maturing in 2026.
We have a green bond of NOK 2.5 billion with a margin of 3.25% maturing in 2024. Lastly, the RCF. In October, we increased the committed facility from EUR 400 million - EUR 500 million and also added a new accordion option on top, potentially bringing the total facility up to EUR 600 million. The RCF facility has a duration of three years plus one, plus one-year options, and at year-end, the RCF was undrawn. This brings us to the available liquidity on slide 29. As of year-end, the RCF of EUR 500 million was undrawn, and we had a cash position of NOK 427 million. This sums up to an available liquidity of NOK 5.4 billion at year-end, up from NOK 3.5 billion at Q3.
The drivers of this is, as previously explained, the capital raise in Aker Horizons of NOK 1 billion, sale of shares in Aker Carbon Capture of NOK 1 billion, the increase in the RCF of EUR 100 million, and those effects are partially countered by investments in Mainstream and Aker Narvik. The net debt position was, for the same reasons, down from NOK 6.3 billion at Q3 to NOK 5.4 billion at Q4. At post quarter end, we have received the proceeds from the former transaction of NOK 438 million, which is then not reflected in the Q4 figures. The capital structure on slide 30 reflects listed assets at market value and unlisted assets at book values. The loan-to-value, as defined by the covenants, stood at 11% as per Q4, down from 14% at Q3.
This gives significant headroom to our covenant of 50%. That concludes the financial section, and I'll hand the word back to Kristian.
Thank you, Nanna. Two points I'd like to make in closing. The first relates to the strength of the underlying markets relevant for Aker Horizons. One example being how the EU ETS market has strengthened in a major way. We spoke at length about this at our Q2. At the time, the highest price observed was EUR 58 per ton. Now it's EUR 98. It may very well decrease in the short term as there are multiple factors affecting the carbon price, such as the gas price, but current EU ETS levels are already having a fundamental impact. For instance, with normalized gas prices, even the most efficient coal-based power plants are no longer profitable versus old gas plants at carbon prices above EUR 80 per ton. In our view, we are starting to leave the gas to coal fuels switch range and moved into the industrial abatement cost range.
Aker Carbon Capture has stated that the full value chain service offering to be in the range of EUR 70- EUR 150 per ton, meaning we should start to see economic viability. This will naturally take time, as corporate investment decisions typically take quarters and years, while markets move in real time. It's still early days, but the price and cost of carbon are converging, which is key for market adoption. Furthermore, we can read daily about corporates making commitments to decarbonization. The shipping sector is a good example where end customers, both retail and industrial, are demanding lower CO2 footprints. The announcement with Kühne+Nagel is a good example of this dynamic, and we're seeing similar mechanisms at play in other sectors, such as the automotive industry and the impact on the green steel value chain.
Second point in closing is related to continued industrial development unfazed by volatility in capital markets. You've heard today several examples of industrial progress, project milestones, new partnerships, new ventures. The example of Narvik is fitting. Holistic green value chains, playing to Aker Horizons's strengths, decarbonization, partnering with local communities, working downstream to create offtake, large capital investments. We have a strong liquidity of NOK 5.4 billion. We see great interest at the portfolio company level, such as at Mainstream, to raise growth capital at strategically focused investors. We see an enormous interest amongst green infrastructure capital and a scarcity of origination of energy transition projects. This is where Aker Horizons has an unfair advantage in its own ecosystem, multiplied by the wider Aker group. With that, we're happy to take some questions.
Thank you, Kristian. We now have time for some questions from you.
My name is Ivar Simensen, Aker Horizons Communications. In addition to the speakers, we also have Paul Corrigan, CFO, Mainstream Renewable Power with us. The first question is on offshore wind, and what is your view on opportunities for Aker Offshore Wind in the domestic market, and how do you assess the plans laid out by the Norwegian government last week? I'll respond to that. First, 'cause last week, the Norwegian government shared details and firm ambitions to realize offshore wind at industrial and commercial scale in Norway. With phase I of Sørlige Nordsjø II to have a capacity of 1,500 MW, with a phase II adding another 1,500 MW.
For these developments, electricity produced from phase I will be transmitted via subsea cable to the Norwegian mainland, while the government said it would evaluate different grid alternatives, including export, for the phase II . In the Utsira North area, the government confirmed plans to realize a total of 1,500 MW from floating offshore wind across multiple developments. In summary, we're pleased to see the process moving forward, and particularly note the Prime Minister's ambition to have, you know, wind farms in operation before 2030. We also view positively the fact that the Norwegian government is starting to look beyond the first two areas of development, providing the industry the prospect of a pipeline which is critical to reach scale.
Aker Offshore Wind have partnered with strong established players like BP, Statkraft, and Ocean Winds for the two developments in Norway, and these parties will continue to mature these opportunities. I think also if we look at the extended home market, we note this morning Sweden announcing plans to accelerate the development of 20-30 TWh of offshore wind along the Swedish coast, and at the same time instructing its energy agency to develop plans for another 90 TWh of electricity produced from offshore wind in Sweden, where Aker Offshore Wind has a good partnership with Hexicon for several potential, you know, developments. We certainly see, you know, a lot of opportunities for Aker Offshore Wind in its markets close to home.
Just putting those terawatt-hours up to 120 in perspective, the first phase of Sørlige Nordsjø II is seen at around 7 TWh. That's, you know, some commentary on the domestic opportunities for Aker Offshore Wind. We move on to the second question that is coming from Turner Holm of Clarksons. It goes to Mary in Dublin. Good afternoon. Could you talk more about the pricing you're seeing in the private market for renewable developments and how this contrasts to the increasing cost of capital in public markets or your book value for Mainstream? And in this regard, do you expect that there will be a gain on the recent sale by Mainstream of wind assets in Chile? Mary, please go ahead.
It's Paul here. I know Marie just let me know she just dialed off and dialed back on again. Could we go to the next question and then just repeat it? She'll be back in two seconds.
Certainly. We'll move on to the next question on goodwill. You've previously reported a number for goodwill on Mainstream, and can you comment on whether this has changed in the quarter? I guess, Nanna, you will take that.
Yes. The goodwill that has been reported this far has been preliminary, and we worked since the closing of the Mainstream acquisition on an in-depth future cash flow analysis for the final purchase price allocation. This has resulted in a significant reallocation between assets. The preliminary goodwill that we reported was estimated at EUR 580 million, while the final is estimated at EUR 157 million. Those numbers are both on a 100% basis. This reallocation is a result of significant excess values that have been identified in the Andes portfolio and in Aela and Lekela, and these are the assets that qualify for asset recognition under IFRS.
A technical note is that in addition to the EUR 157 million of goodwill that represent the development portfolio and the platform value of Mainstream, there is also EUR 108 million of technical goodwill related to the Andes portfolio. This is due to a recognition of a deferred tax liability on the identified contractual assets. This part of the goodwill is therefore directly related to the asset values of Andes and not the pipeline or the Mainstream platform. The purchase price allocation was completed before the Aela transaction, and the transaction ended at a higher value than was estimated, which demonstrates that the methodology applied is robust. The final purchase price allocation will be presented in Aker Horizons' annual report in March, and we do not see any impairments to any of these assets today.
Okay, thank you. Thank you, Nanna. Mary, if you're back on, I can repeat the question from Turner.
Yes.
Great.
Yes.
Good to hear you.
You can repeat.
Yes, please. Could you talk about the pricing you're seeing in the private market for renewable developments, and how this contrasts to the increasing cost of capital in public markets or your book value for Mainstream? In this regard, do you expect there will be a gain on the recent sale by Mainstream of wind assets in Chile?
Yes. What we're seeing is a very strong private market, and we've seen that in the sale of the Aela portfolio in the Lekela process that has now started. You know, very strong portfolios of good quality assets are coming to market. We're seeing a very strong interest from quite a wide range of bidders. We're experiencing very competitive processes. We're experiencing low execution risk. From the Mainstream perspective, we will update further when the transaction closes with regard to the sale of Aela, but we expect to be reporting a strong gain on that transaction.
Okay, thank you, Mary. Now, another question is from Espen Wogen at Fondsfinans. On the MRP Mainstream solar assets in Chile, specifically the Pampa Tigre, Valle Escondido and Río Escondido, these seem to have particularly high capacity factors based on the production estimates. Is there any particular reason for this? There's a second question, if you could update us on the CapEx for Mainstream's remaining construction assets.
Great. I'll take both of those questions. Yes, the Mainstream solar assets, the Pampa Tigre, Valle Escondido and Rio Escondido, they do have very strong capacity factors. What you're seeing here, one of the strongest development pipelines in Chile, we've been present in the market since 2009, and are, you know, the assets with the strongest solar and also wind resources. You know, that's what those P50 estimates. With regard to the CapEx on the Mainstream construction assets, on the Cóndor and Huemul portfolios. Our project finance structure then allows us to back end our own equity, so we are now commencing our equity investment. Equity contributions, you know, across both portfolios.
What we're contributing remains in line with our forecasts and in line with the construction budgets.
Okay, thank you, Mary. The next question from a retail investor is, when can we expect information about reopening Moses Lake as relating to REC Silicon? Kristian?
Yes. Well, the company REC said at their last quarter that they're going to maintain the ability for possible Moses Lake start up in 2023 off the back of a tight polysilicon market, favorable government support in the United States, and the FBR technology, which is competitive in today's market, particularly given the low energy consumption of that technology. Now, I'll let the company provide an update. They're reporting later this week, but I can say that we're very pleased with our new partner, Hanwha Solutions. Myself and a representative from Hanwha have now gone on the board, and this topic is of highest priority for REC.
Okay, great. There's another question from Turner Holm, Clarksons. This is with regards to Mainstream. Can you talk about how project returns are evolving given increasing interest rates and inflation, but also higher electricity prices across much of the world due to rising fossil fuel prices? In other words, are returns keeping up with inflation?
Yeah. I would say yes, you know, to answer the direct question. Firstly, I would note that CTI increases returns on our existing projects, as I set out within the presentation, and, you know, that we factor in, you know, any higher costs in our bidding strategy, and that's a very careful and considered approach. I expect that over the medium term, that broader return expectations will rise to match investors' return requirements, assuming that they would be higher at times of higher inflation. You know, clearly we're seeing higher electricity prices much of the world, you know, so therefore, you know, we do expect the return profile to continue to evolve.
Thank you, Mary. Now there's a question from Nikolai Ødegård at Clarksons. Since the third quarter 2021, Aker Horizons have taken several actions to strengthen its financial position, including private placement and share sales in ACC and REC. Is Aker Horizons now fully funded to support the growth ambitions of all its subsidiaries, or can we expect further capital raises either through share sales or issuance of new shares? Nanna, will you take that?
Yes. We have a strong financial position today. At quarter end, we had available liquidity of NOK 5.4 billion, and in January we received the proceeds from the transaction with Hanwha. We are not planning for a capital raise, and we see great interest in funding of green projects, and do not see it as a challenge to attract capital for developing our projects.
That's great. We have a question from Håkon Amundsen at ABG. How does the current challenging equity market impact your holdings, you know, in terms of organic growth ambitions and M&A opportunities?
Well, for organic growth, and you just heard from Nanna, it's full steam ahead. We're very excited about the plans, and we have a robust position at Aker Horizons, and we see diversified sources of financing for our projects. In terms of M&A, as we had in our summary slide, we think that this volatility in the current market will offer opportunities. It's something that we're going to be disciplined about, but it's certainly on our radar screen on using M&A to enhance our growth in Aker Horizons.
Okay. Thank you, Kristian. That concludes our presentation, this afternoon, and we thank you for participating.