Canada Pension Plan Investment Board commits over $900m to renewable energy company

The Canada Pension Plan Investment Board (CPP Investments) has invested $905m into a US-based renewable energy and transmission company in the last quarter of 2023.

In its third quarter fiscal 2024 report, CPP Investments, the investment management arm of CAD $590.8bn Canada Pension Plan, announced several sustainable commitments in credit and real assets. They include a follow-on investment of US $905m into its subsidiary Pattern Energy Group, a US- based renewable energy supplier, to support the company’s ongoing development projects and future growth opportunities.

This follows on from its acquisition of the company in 2020, a deal valued at $6.1bn.

Alongside this commitment, CPP Investments has participated in financing a subsidiary of Pattern Energy through investing $83m in a holding debt facility. This will support an initial equity capital for construction of SunZia Transmission and SunZia Wind, a clean energy infrastructure project in the US, the investment manager said.

In addition, CPP investments allocated €118m in a forward-flow mezzanine loan facility for Enpal, a German company financing climate solutions, including solar panels and electric vehicle chargers.

CPP Investments has also invested US$75m in Altus Power, a commercial electric power provider that develops, owns and operates solar generation, energy storage and charging infrastructure in the US.

Outside of the US, CPP Investments committed an additional £300m to Octopus Energy to support its technology platform, Kraken, and the furthering of its renewable energy, heat pump and electric vehicle offerings.