CIP Raises €3 Billion for Industrial Decarbonization-Focused Energy Transition Fund
Energy infrastructure investment manager Copenhagen Infrastructure Partners (CIP) announced that it has raised €3 billion for CI Energy Transition Fund I, its new fund aimed at investing in next generation renewable energy infrastructure, with a particular focus on decarbonizing hard to abate industries.
The fund surpassed its prior €2.25 billion target size, and closed at its €3 billion hard cap. Roughly half of the commitments were from new investors to CIP.
Jakob Baruël Poulsen, Managing Partner in CIP, said:
“We are very pleased to welcome a prominent group of existing and new institutional investors to CI ETF I and are delighted that investors share our confidence in and appetite for clean energy infrastructure projects and invest alongside CIP in the next phase of the energy transition.”
According to CIP, the new fund enables institutional investors to participate in the decarbonization of hard to abate industries, such as agriculture, aviation, shipping, chemical manufacturing, and steel production through the use of green fuels and feedstock and CO2-free fertilizers, and supports the integration of renewable power generation in the energy mix, through grid balancing.
With a primary focus on greenfield projects in OECD countries, the fund invests in next generation renewable energy infrastructure including industrial scale Power-to-X (PtX) projects, such as green hydrogen and green ammonia, and sustainable aviation fuel, as well as advanced biofuels, energy storage, decarbonization technologies, along with other renewable energy technologies or activities supporting the renewable energy transition.
CIP stated that once the fund’s current portfolio is operational, it is estimated to reduce over 7.5 million tonnes of CO2 and deliver more than 4 million tonnes of green fuels annually.
“Solutions such as Power-to-X will be key for countries and industries to take the next big leap within reaching the commitments of the Paris agreement and achieving energy independence. As an industry pioneer and one of the global market leaders in greenfield renewable infrastructure investments, CIP is uniquely positioned to invest in this segment.”