In another sign of the strong and growing demand for sustainable investments, energy infrastructure investment fund manager Copenhagen Infrastructure Partners (CIP) announced that commitments for its new global renewable energy fund, Copenhagen Infrastructure IV (CI IV), have reached €4 billion, making it the largest dedicated greenfield renewables fund in the world. The firm reports that it has achieved this milestone after only 5 months of marketing, and is approaching the target fund size of €5.5 billion.
Steen Lønberg Jørgensen, Partner at CIP, said:
“We are very pleased with our investors’ continued confidence in CIP’s approach to energy infrastructure investments and look forward to continuing to create value for our investors, project partners, and communities through the fund’s investments. With expected capital commitments of EUR 5.5 – 7 billion, CI IV is set to become the largest dedicated renewables fund globally and is expected to invest EUR 10-14 billion in greenfield renewable energy infrastructure projects across North America, Western Europe, developed Asia and Australia. CIP’s total portfolio of investments is estimated, with the establishment of CI IV, to save the equivalent of approximately 10-11 million tonnes of CO2 each year and sustainably power approximately 5-6 million households across the globe.”
CIP stated that the new fund will focus on greenfield investments within core energy infrastructure. It has a global reach and will diversify investments across technologies such as contracted offshore wind, onshore wind, solar PV, transmission, storage, and waste-to-energy in low risk OECD countries in Western Europe, North America, developed Asia and Australia.
According to CIP, the fund has already secured ownership and exclusive rights to several attractive renewable energy project opportunities, with potential investment volume exceeding the target fund size, including a final investment decision on its first investment in July. It is on track to reach final investment decision on an additional three investments during the next six months, potentially reaching investments of €2 billion.
Jakob Baruël Poulsen, Managing Partner at CIP, said:
“As a renewables market leader and pioneer, we are very happy to observe continued strong appetite for renewables. The investments of the CIP flagship funds have long-term contracted cash flows and robust investment structures, including low energy price risk exposure and cautious use of financial leverage, and have proven resilient and non-cyclical. The investment outlook for CI IV is very promising and we expect the fund to become fully committed within approximately three years and with investments in attractive projects with similar characteristics to our existing investments.”