Hi everyone, welcome to this first full year presentation from Cloudberry. We have a lot to talk about today, we have prepared a presentation that we will go through over the next 30 minutes. Today, I will be joined by my colleague, Suna Alkan , that will take us through the sustainability presentation, and our colleague, Christian Helland, that will take us through the financials and value. After the presentation, we have arranged a Q&A session, so please use the chat to write us questions, and we will try to answer as many as possible. 2020 has been a transitional year for Cloudberry. Our purpose is to provide new renewable energy for future generations. New renewable energy is key to the energy transition. As you see on the right side of the presentation here, we have had a busy year.
We started out with two assets in production and two assets under construction. We have ended the year with growing our portfolio in all aspects. We have also moved into the offshore wind market, which we will come back to later in the presentation. We focus on both production and development. We have our development in-house team that develops the projects from the very greenfield, very beginning, until they are ready to construct. We have our production company, where we have our producing assets that will generate cash flow to the company. We are a dedicated team that will focus on growing the portfolio, both on the production side and on the development side going forward.
We have also established this platform that we listed on the Euronext Growth in April last year. We are now working on preparing for a full listing on Oslo Børs during the first half year of 2021. As I said, it has been an eventful year for Cloudberry. We started out in 2020 to acquire the production company and the development company. We moved on to acquire both a hydropower portfolio with Swiss Life and also a wind project with two other investors in Norway. At the same time, we have continued to develop our own in-house projects. We think it's key to have full control over the development portfolio and develop our own projects. We have seen a lot of progress on our wind project in Sweden over the last year.
Doing both these things, we have always had a focus on our IRR requirements, and we managed to show also the value creation we do on the development side when we farmed down in the Rewind Vänern project at the end of 2020. As you see here, we have scaled up significantly during 2020. We have increased our production capacity by seven times. You see here on the left side, we started out with a small hydropower plant and a small wind farm in production, and then we have increased this by sevenfold in 2020 and reaching about 100 MW of secured capacity end of 2020. On the production side, we have moved from 15 MW in production and under construction to about 100. On the construction permits and the backlog, we have started 2020 with nothing and grown this.
Today we have secured a construction permit portfolio of 150 MW and a backlog of exclusive projects of over 350 MW. Here we have an overview on the status of our projects that are under construction. The four projects here on the top of the page are hydropower plants, and the one project on the bottom is a wind farm. On the hydropower plants, we have the two first one here is commissioning as we speak. We have run a lot of tests on these, and they are progressing as planned, and we expect financial flows on the two first ones here in Q2 later this year. The Åmotsfoss and the hydropower plants that we have under development in the southern Norway is progressing according to plan.
The Odal wind farm, we together with KLP and Akershus Energi are the owners, are also developing according to plan. We have had some COVID issues here with the closed borders. We are working on solving these issues as they come up. So far, we have not changed any time schedules, and we hope to be seeing production from Odal wind farm later this year and beginning of 2022. These are the projects that we have construction permits and we are working on. This is a more early phase projects. Hån being the first one. All concessions are in place, we are awaiting export license from the Swedish government. We are doing the procurement process as we speak, and hope to take investment decision before the summer.
Project Vänern and Duvhällen, we also have some issues that we are working on, and we are confident that all these projects we will see investment decision being taken later this year, beginning of 2022. All these important actions and processes has, of course, also led to some subsequent events. In 2021, we have followed up several of these acquisitions and project that we have developed. We have also used the financial market during the 2020s, and we have, latest yesterday evening, informed the market that we have agreed on a facility with SR Bank of NOK 700 million. Last year, we also announced that we have secured financing of the Odal wind farm of EUR 90 million.
With this, I say thank you for your attention for the first part here, and I am going to give the word to my colleague, Suna Alkan, that will take you through the sustainability part of the presentation. Thank you.
Thank you, Anders. I am Suna Alkan, Head of Sustainability in Cloudberry. Sustainability is at the core of Cloudberry's strategic positioning as a renewable company. As Anders said, our purpose is to provide renewable energy for future generations, and our long-term success is linked to operating our business in a sustainable way. From 2020, we started providing ESG reporting in our annual report and have integrated sustainability in our business strategy and operations. Even though our business is sustainable by nature, construction and production do have an impact on environmental and social interests. Cloudberry is aware of the risks and seeks to understand and evaluate the aspects. In 2020, Cloudberry's sustainability management has been strengthened, and considerable efforts were placed on identifying the aspects through stakeholder dialogue and capture what is material throughout the company's value chain for our stakeholders and our business.
In 2020, Cloudberry conducted an internal assessment of the potential financial impact of climate-related risks and opportunities in accordance with the recommendations of the disclosures of the TCFD. The analysis identified and recognized physical and transition risks, and the assessment will be further developed in 2021. Certain areas of Cloudberry's business will have emissions. Last year, Cloudberry started measuring its greenhouse gas emissions and established a climate reporting system to monitor its direct and indirect emissions. The total greenhouse gas emission from Cloudberry in 2020, including Scope 1, 2, and 3, were estimated to be 187 tons of CO₂ equivalents. The main emission source was from the concrete from construction of the two hydropower plants, Bjørgelva Kraft and Nessakraft. Cloudberry has compensated for its indirect and direct emissions by purchasing carbon credits, and now is a net zero company. In 2020, Cloudberry contributed to the reduction of greenhouse gas emissions.
The company produced 21 GWh of renewable energy, which is equivalent to a CO₂ reduction of more than 5,000 tons CO₂ equivalents. This is after taking into account Cloudberry's direct and indirect emissions. Cloudberry is contributing positively to an overall reduction in emissions. Our reduction is expected to be seven times higher within 12 months as the company increases its production of new renewable energy. We received questions regarding the EU taxonomy, which was published in March last year by the European Union to classify sustainable activities. The taxonomy contains implementation guidance, including technical criteria for a range of sectors. This includes a number of principles and mitigation criteria where it specifically pinpoints power densities of hydropower. According to the report, hydropower facilities with a power density above five watts per sq m are currently exempt from greenhouse gas lifecycle assessments.
The legislation formalizing this EU taxonomy has not yet been adopted. Cloudberry is aware of the potential consequences for the hydropower sector if the legislation will be formalized. The company is preparing for potential risk mitigations, and we have done some kind of calculations. Internal analysis and the calculations between the Cloudberry's hydropower projects resulted in estimated power densities far above 5 W per sq m. In other words, according to the proposed EU taxonomy matrix, Cloudberry has highly efficient hydropower plants related to the impacted areas. The company monitors the EU taxonomy for sustainable activities closely and assesses alignment with the EU taxonomy. The development and operations of wind farms and hydropower plants have an impact on both land areas and the river systems.
We consider how the hydropower plants impact water flow, fish, and sediment load, and, for instance, what are the emissions from concrete used to construct power stations and penstocks. Assessing ESG impacts throughout the lifecycle of our projects are imperative to the company. It's an integrated part in the value chain, but impact is something we continuously work on reducing. Cloudberry recognizes the need to continuously evolve our sustainability work and how to conduct our business in a sustainable way with regards to environmental, social, and governance aspects. With the strengthening of our sustainability management in 2020, it provides us a solid base in the further development of our sustainable business strategy, and we are better positioned to determine detailed KPIs. For information on our sustainability work, please see our annual report on our website, published this morning.
Sustainability reporting is of high importance. Therefore, it's integrated in Cloudberry's annual report. You may also contact us if you want to discuss ESG matters with us. I'll pass the next slide to our CVO, Christian. Thank you.
Thank you, Suna. I heard several viewers had the problem, in the beginning, to see some of the slides. I can just spend one minute to show the intro slide for others. This is quite important for us. It's been an extremely active year, so we try to illustrate how the Cloudberry looked in the beginning of the year here in 2020. You see the four projects on the left, and how the portfolio look now in the end of 2020. For us, this has been a very active year, and it's also very representative for what you will see in the financial figures when we come to this. Just keep with me a little bit, and we're back to normal here. For us, before diving into the details, we would like to just emphasize what has been our strategic focus for 2020.
We started out the year, we had a high growth focus. We wanted to secure a good long cash flow from producing renewable assets in the Nordics. We wanted also to secure an exclusive project bank of projects so we can grow our in-house and have the dynamics to either sell out or construct ourselves. At the same time, we had significant focus on the balance sheet, that we wanted to finance the project pre-construction and have the capital to follow through on the projects. It's been a very active year. We raised a little more than 800 million NOK, we have cash to finalize these projects. Another big project for us is to build a scalable, low-cost platform for Nordic renewables. We decided to list the company in March, it came on Euronext in April.
We spent significant time to build this platform, invest in it, and now we're ready also to list on the main list here in Oslo. In 2021, we'll have a lot of the same focus. We're still growing, both organically and inorganically. A lot of our assets is under construction and will come on stream this year. Some came on stream late last year, beginning of January, Selselva, and so forth. We continuously have focus on our balance and the financing, come a little bit back to that, and now also shift our focus toward profitability. We're starting to get cash flow from our production, and we see significant interest also from our projects. To go into the profit and loss, we have had revenue from only two project this year, and that's Finnset bekken and Reimyra.
We have NOK 4 million in revenue. This is only 3 MW of rep. On the other hand, we've had about operating cost above NOK 30 million. For us, it's been a good year. We've been able to keep cost low in a very active year. We've had significant M&A activities. We have had a lot of costs to the platform. For us, it's also we've had significant interest in our development segment. We've decided to keep all the project in-house in 2020. However, in January 2021, we decided to farm down in the Vänern project. For us, this has been important for us to show that we're able to create value in the development segment. We've decided to farm down 80% of that project.
Just to put things into perspective, if we sold 100% of this project, we would have about NOK 300 million in expected cash flow 2021, 2022, and 2023. This project alone is 10 x the actual costs of Cloudberry. We have had about NOK 30 million in operating costs now in 2020. Again, going forward, a lot of focus on the cost side. We have built a low cost. We want to be of low overhead and also be agile, be dynamic, be able to take local opportunities when they arises, so we can have accretive projects for our shareholders. Again, just see on the bottom right how we're growing from year-end. We had 3 MW in production. By this year, we hope to have about 109 MW in production. We see a significant growth.
We also see a significant growth in our construction permit backlog and a backlog of 11 projects. Here we have not listed our pipeline in the Baltic, but we also have a pipeline of offshore projects. Balance sheet, a very clean balance sheet. Again, we wanted to finance this project pre-construction, so we have a strong cash balance. Cash balance of NOK 605 million year-end. We also have additional NOK 152 million standing in an escrow account ready for the Odal wind project. Equity, a little bit about NOK 1 billion in equity, gives an equity ratio of 96%. Currently low interest-bearing debt, NOK 263 million interest-bearing debt, and yesterday we announced that we have refinanced. We have a very good facility with SR Bank and have repaid a short-term loan of about NOK 236 million. How do we go forward? We'll continue to do a lot of the same.
The production segment for us, long-term cash flow from Nordic renewables, primarily hydro in Norway, wind in Sweden. When we came on stream or was listed in April, we said to the market we expected about 5%-8% equity return on these long-term cash flows. Hydro has typically 50+ year cash flow. We have raised this now to 6%-9%. Also notice the Odal project is expected to give us strong cash flow when it's up and running within 12 months. This is our largest project, the Odal project. On the development segment, we have built up the construction permit side and the backlog. We show to the market here the value of these construction permits. We see that an exclusive project bank is of high value to new owners.
When we farm down in Vänern, and we saw a project value about NOK 3 million per MW. This indicates a little bit the potential value in our development portfolio. Last slide for me. We'll be growing in several ways. We obviously have the cash on our balance sheet to finance the mid and short-term projects that we're currently constructing. We're also starting to generate cash from our producing assets that's coming on stream. We're getting very flexible local financing from banks. SR Bank, please read our press release last night where we get good flexibility and also the interest rate or the margins on the term loan is below 200 basis points or below 2%. We also see a lot of interest from large international pension funds and life insurance companies that want renewable exposure in the Nordics.
For us, it was very exciting to close a fully merchant project with the direct lenders that was lending us EUR 90 million together with KLP and Akershus Energi in Odal project. We open up this direct lending possibilities. This is very eye-opening for us, and we're extremely happy to have done it. We can have competitive bidding between banks and direct lenders. Also got a more than 20-year fixed term loan, taking out the interest rate risk in that project. We're continuously evaluating green bond financing, banks and the direct lending facilities are still at more attractive levels for us. I show with the Vänern project that we will farm down certain projects. When we look at the risk-reward portfolio, we won't have one single project that's too large, we would diversify risk and also show the value we're able to create as developers.
Some project, as you see on the right-hand side, it's the Marker project and the Hån project we're hopefully soon getting ready to construct. We've shown in 2020 that we have a good business model. We can do cash transactions, we can also share transactions, and we see significant interest from owners that want to give us access to a project or a company via full or part share consideration. Both Skogvind and Scanvind2 was good examples of transactions where we settled the transaction in shares. We have evaluated about 60 projects for the last six months. It's a lot of projects. We work hard with them. When we see value in creative projects, we'll also consider to use the equity markets to grow our portfolio further. I'll leave the word to Anders for some concluding perspectives on our future. Thank you for your time.
Thank you, Christian. I see the questions are coming in. We will have the answers for you after I have summed it up. We want to start addressing some of the outlook and opportunities we see. We have a PPA in place for our production in 2020. It's covering approximately 2/3 of our power revenue. We will continue to do similar hedges and also probably PPAs in the future. An important part of our strategy is to have a certain amount of our revenue hedged through the market or the PPA market. As you see here on the left side, we have copied in the price forecast from the Norwegian Water Resources and Energy Directorate. They do these prognosis every year. Here we see the 2030 prices and 2040 prices from the directorate.
NOK 0.40 here per kilowatt hour will be approximately as EUR 40 per MWh . As you see, there are different price areas, both in Sweden and Norway, with the different price prognoses. As I mentioned earlier, we have focused on the southernmost price areas in Norway and in Sweden. For the Norwegian market, that's due to the interconnectors, and we see that they will have an impact on the price level in South of Norway. In Sweden, it's partly interconnectors and partly phasing out of the nuclear power in Sweden over the next years. We expect that the prices will increase from last year and also this year's level. We think it's the general electrification of the industry, the general electrification of the society will be a driver, along with all the new industry, all the new projects.
We see a large number of projects, both in Sweden and in Norway and in the Nordics in general, that is power-intensive. We have the hydrogen, we have the battery. Alone in Norway, we have 10, 12 different battery projects over the next years. We also see that data centers are developing in the Nordics. We think that all this will increase the demand for new renewable power. As mentioned, the interconnectors will play a role. We have already seen that. The first 3 months of 2021, the export from Norway has increased significantly compared to last year's 3 first months. All this, we think it's important to bear in mind when we are looking at projects and our portfolio going forward. We will continue to do more of the same as we have done in 2020. We see our strategy is working.
We see we get the attention in the market. We want to do more of the same as I said. We want to develop the organic in-house projects. We have several new projects that we work on. Onshore, these projects are up to 100 MW +, each of the projects. Offshore shallow water, of course, they are up to both 400 and 500 MW. We also see an active market when it comes to acquisitions. We will continue to follow the market. Also on the strategic side, we think that it can be interesting possibilities over the year, and you shouldn't be surprised if we are going to take part of some of these strategic opportunities going forward. To sum it up, yes, we are delivering on our strategy. We are delivering on what we said that we were going to do.
We want to build a leading IPP in the Nordics, and we have come a long way. This is a new chapter, really, for Cloudberry going forward. We see that we have a success in both developing projects, our in-house project, but also to use the market on the M&A side. When it comes to the offshore pipeline, I think as Christian already mentioned, that we look upon ourselves as more of a developer of the projects than being also the owner of these on 100% basis. Here we are looking for partners, or we will partner up with others to realize these projects. We think having been one of the first to develop a offshore license in Sweden, we have a unique competence on the offshore side. What we can also see more of in the future is this, what we call the industry energy partnerships.
We see the establishing of new power-intensive industry, and we look at these opportunities and think we have a role as the local partner for supplying clean energy to these projects. That was my concluding remarks, and thank you for your attention. We have gotten some questions. I think they are now being published. I have at least a couple of questions I would like to answer. One of the question was, who is getting the revenue from the projects when they are in the testing mode? What we do is we do all these tests and the commissioning, and we don't take over the power plants before they are all okay, and we have actually done the revenue only from the start of when we are taking over. In the test period, it's the developer who has the revenue from the test production.
Another question is if we have everything in place before the uplifting to the main list of Oslo Børs. Yes, as far as we can. We have a general meeting 28th of April, some of the issues has to be decided on the general meeting, such as a nomination committee has to be elected, we have to change the name. We're going to be a public limited ASA company, some changes in our bylaws. Everything that we have control over and we can do, we have done. Hopefully we will have the last things in place after the general meeting, 28th of April. I give the word to Christian, who will give you answer a couple of the other questions. Thank you so much.
We have gotten a lot of questions, so we will sort them out and just taking notice of starting from the top. I got some questions about the difference between Euronext Growth and Oslo Børs for us. For us, we are attracting a lot of long-term investors there. Some of them are only investing on renewable energy-related markets. We see that in Sweden, and also for significant investors here in Norway. For us to be on a regulated market and also have a strong governance platform is important for us in the sector we're within. We also will be reporting on a quarterly basis, not half year, and again, attract more long-term investors. The SR facility, it was asked how that will work. For us, it's a very good way for especially growing the hydro and have the flexibility to grow the hydro here in Norway.
On parts, it is divided in two. It is one portion that is a NOK 400 million loan facility, and then it is a revolving facility of NOK 300 million. That gives us the flexibility to construct and give guarantees to turbine deliveries and so forth. Yes, it will give us some more flexibility, but also on the guarantee side. We got some questions on the M&A opportunities. Yes, there are significant opportunities. They are both incoming, but we are also very active in the market and speaking with the local owners, and we want to be a local company and find win-win solutions with local owners. Either land or early phase projects, or projects close to operations. That is both incoming and an active team, both in Norway and Sweden. We got some questions about value.
I would like to say that both Pareto Securities and Carnegie, their analytical teams, third parties, are analyzing us and have done extensive work on this. They're publishing research reports on us, and I will highly recommend for the ones who's more interest in detailed valuations and so forth, to contact either Carnegie or Pareto for third-party value valuations. There was some question about farm downs. We're growing bigger. We're getting a more strong balance sheet. We will always think as a portfolio manager to have our risk diversified. We have project in different price zones, and we like obviously the price zones in South Middle and always South Middle, but Sweden where the power is needed and where we have the interconnectors out. Yes, we will evaluate it, but with a growing balance sheet, we're also able to do more on our own.
Now will you conclude on some last sustainability questions, and then I hope we can conclude. Thank you.
Yes, Christian, thank you. There was a question if we could be a bit more specific regarding the EU taxonomy. The legislation formalizing the taxonomy is not yet adopted. We still wait for the outcome of the concluded consulting process that was in process during fall last year, January. Meanwhile, of course, Cloudberry is preparing for potential risk mitigations. We've done some calculations, as I mentioned, and we do internal analysis continuously on specifically the power densities so far. We are in a process with assessments on all the hydrographs, indeed. I think as much as we can say at this point is that we wait for the outcome, like I said, or the process, and meanwhile, we're also in close dialogue with national and European associations and organizations, and try to be tuned and take part continuously.
I think that's actually as much as we can say at this moment. Thank you. I think Anders is concluding maybe.
Thank you, Suna. Thank you for all the questions you are sending in. Lots of good questions. I thought I should finish off with answering all of these questions we have got is, are you only focusing on Norway and Sweden, or are you also focusing on other Nordic countries? Yes, we believe in being local. We have focused on using our networks in the Nordics. We believe in being focused and lean. We have started out in Norway and Sweden. As you can see, we have had quite a success with that. We are also looking at opportunities in Finland and opportunities in Denmark. We haven't done anything yet. That is due to capacity, but also to find the right projects. We are going to continue to look at the other markets in the Nordics.
Also when we are talking about the shallow water in the Baltic Sea, we don't leave it that only to the Swedish sector. We have started in the Swedish sector. The Swedish sector we know the framework, the process, but we are also looking at shallow water opportunities in other sectors of the Baltic Sea, such as the Finnish sector. I think you will see that we are also going to get projects or develop projects in the other Nordic markets. I say thank you to everyone from Cloudberry. Appreciate that you have spent your time listening to our presentation. Thank you for all the questions. Please send us more questions if you have, and we will try to get back to every one of you. Have a nice day, and greetings from Cloudberry. Bye