Canadian pension giant and National Wealth Fund support UK battery storage project

The Investment Management Corporation of Ontario (IMCO) has helped fund a new battery energy storage system (BESS) in Hyde, UK. Its equity investment in Pulse Clean Energy, the company that built the BESS, came alongside a £175m credit facility with Santander, CIBC, Investec, and the UK’s National Wealth Fund.

Pulse Clean Energy claims that the 42 MW / 100 MWh facility will be capable of powering over 227,000 homes for two hours and will support a clean and stable energy supply for local communities and businesses across the region.

The company now has 260 MWh of operational BESS assets and an additional 273 MWh under construction. It is targeting 1GW of installed capacity in the UK.  

Pulse Clean Energy collaborated with several key partners to bring this project to fruition, including ENWL (Electricity North West) as the distribution network operator, and Network Rail. 

Trevor Wills, CEO of Pulse Clean Energy, said: “At a time when the nation is grappling with rising energy costs, while striving to meet ambitious renewable energy targets, battery storage has never been more important. By managing the intermittency of renewable sources to ensure a reliable supply of power, our Hyde BESS is playing a key role in the UK’s transition to a cleaner, more affordable, and more secure energy future.”

IMCO’s interim net-zero targets include a 50% reduction in portfolio emissions intensity by 2030, as measured against IMCO’s 2019 baseline, alongside investments in climate solutions totalling 20% of the portfolio by 2030.

These interim targets place IMCO among the more progressive Canadian pension fund managers, particularly against a landscape where many funds still lack any concrete emissions reduction targets.

“We believe that the global transition to a net zero economy will be one of the more powerful investment trends in the coming years,” said IMCO’s CEO Bert Clark back in 2022. “"The targets we have set for 2030 reflect our pragmatic approach to helping our clients mitigate the risks and benefit from the opportunities associated with the transition to a low-carbon economy."

IMCO manages over $77bn of assets on behalf of Ontario’s public sector pensions.