Canada’s largest pension injects $145m into ‘green molecules’ in decarbonisation push

The Canada Pension Plan Investment Board (CPP) has partnered with project developer Power2X to invest €130 million into multiple “green molecule” projects, such as hydrogen and further energy assets including green methanol and ammonia.

The Netherlands-based Power2X develops large-scale new energy assets and infrastructure focusing on decarbonising industrial value chains. Under the terms of the deal, CPP will acquire a majority interest in the company.

The investment comes from CPP Investments Sustainable Energies, which holds a portfolio primarily comprising of long-term tangible assets and invests in renewable and conventional energy, carbon capture, utilities, and power generation. The Sustainable Energies group portfolio totals around C$32 billion ($24 billion) in net assets.

“The need for industrial decarbonisation is increasing rapidly, and green molecules have a vital role to play in meeting these demands, whether to create alternative fuels, hydrogen, or renewable feedstocks such as green ammonia," explained Bruce Hogg, head of sustainable energies at CPP Investments.

“With Power2X’s development capabilities and CPP Investments’ flexible capital and sustainable energies expertise, this partnership enables us to invest in next-generation energy assets at an industrial scale with long-term business partners.”

The CPP is the largest pension plan in Canada, and as of March this year held C$570 billion ($432 billion) in assets. Earlier this year, Richard Manley, chief sustainability officer at CPP Investments, spoke to Net Zero Investor on carbon credits and climate data reporting.