Ontario Teachers’ Pension Plan (OTPP), one of Canada’s largest investors, with over $240 billion in assets under management, announced today plans to invest up to $1 billion in a new joint venture agreement with Corio Generation, Macquarie’s Green Investment Group’s (GIG) recently formed offshore wind business.
GIG announced the launch of Corio earlier this year, transferring over 100 of its staff to the specialist offshore business to continue the development of GIG’s existing portfolio of projects across the UK, Europe, Taiwan, Korea, and Australia, and seek opportunities to create, finance and develop new world class offshore wind assets.
According to Corio, the new collaboration enhances the business’ long-term partnership approach by providing deeper access to long-term institutional capital.
Jonathan Cole, CEO of Corio Generation, said:
“This partnership with Ontario Teachers’ represents a highly significant milestone on our journey and demonstrates Corio’s capability to bring together a large-scale global portfolio, a team of industrial experts and world-class investment partners.”
The new investment will fund the development of a portfolio of offshore wind projects with up to 9 GW of energy generation capacity, consisting of 14 fixed bottom and floating projects in South Korea, Taiwan, Japan, Ireland and the UK.
Each of the portfolio projects are currently under development by Corio. OTPP will acquire up to half of Corio’s stake in the projects, with the investments funding development, construction and operation. The companies stated that they will explore opportunities to expand the partnership through the creation or acquisition of new projects.
The new partnership follows Ontario Teachers’ announcement earlier this year of its commitment to achieve net zero emissions by 2050, followed by the introduction of interim portfolio emissions reduction goals. OTPP has outlined several of the initiatives it will follow to reach its climate goals, including plans to significantly grow investments in companies that generate clean energy, reduce demand for fossil fuels and build a sustainable economy.
Chris Ireland, Managing Director, Greenfield Investments and Renewables, Infrastructure and Natural Resources at Ontario Teachers’ said:
“Offshore wind is poised for significant growth in the years ahead as countries work towards ambitious decarbonization goals. This has been a strategic focus sector for Ontario Teachers’ for several years and is a natural fit in our portfolio as we work towards our net-zero targets.”