The company was founded in 1994 by Statkraft, Statoil and Norsk Hydro with 1/3 ownership each, though Statoil in 2004 sold its ownership to Statkraft and Norsk Hydro.

In 1996, Naturkraft received permission from the Norwegian Water Resources and Energy Directorate to build both of the plants, at Kårstø and Kollsnes.

[1] The construction of the two power stations has provoked a huge controversy in Norway, due to the large amounts of carbon dioxide that will be emitted.

The Kårstø plant will emit 1.2 million tonnes of carbon dioxide, or about 2.5% of the total emissions of Norway.

Prior to the opening of the Kårstø power station on November 2, 2007 Norway's sole domestic production of grid electricity was provided through renewable energy.