Octopus launches $10 billion renewable energy platform, buys Australia's largest solar farm

Octopus Investment Australia has officially launched a $10 billion renewable energy “platform,” which will seek to finance large solar, wind and battery storage projects and has purchased Australia’s largest operating solar farm.

Octopus Australia – a subsidiary of one of the world’s largest investors in clean energy, the Octopus Group – said on Wednesday it had simultaneously closed two full subscription funds co-invested in Australia’s multibillion-dollar renewable energy portfolio.

The two investment vehicles are the Octopus Australia Sustainable Investments (Oasis) Fund, open to institutional investors, and the Octopus Renewable Energy Opportunities (Oreo) Fund, open to wholesale investors.

Among the institutional investors who have joined the Oasis fund so far are the federal government’s Clean Energy Finance Corporation and Australian pension fund Hostplus, which has more than 1.5 million members and $86.6 billion in funds under management.

Octopus said the secured portfolio currently stands at $3 billion for wind, solar and storage, with a pipeline of another $5 billion.

Octopus last year, together with CEFC, purchased development rights for two large-scale solar storage and battery projects proposed for development in the Gippsland Victoria region: the 44MW Perry Bridge and 80MW Fulham solar fields, and a separate Gippsland renewable energy park project.

The two groups also announced in March this year that they would invest in the development of the Blind Creek 300MW solar and battery storage project in NSW. Queensland’s Dulacca wind farm is also likely to make its way into the portfolio.

But the Octopus fund counts their first joint asset – jointly acquired by Oasis and Oreo – as the largest operational solar project in southeastern New South Wales, the 333MW Darlington Point Solar Plantation.

Octopus said more information about its next acquisition in Australia would be announced soon.

“The Octopus Group’s approach to investing in renewable energy has evolved globally over the last 15 years,” Octopus Australia managing director Sam Reynolds said Wednesday.

“As such, we saw early on a huge opportunity in Australia and how a portfolio-to-market approach could align our institutional customers (at Oasis), alongside our family office and advise investors (in Oreo) to create sustainable and sustainable value into future.”

Reynolds told RenewEconomy Octopus sees wind, solar and storage opportunities, and at different stages – development, construction and operations – with a mix of merchant assets and fixed prices.

“The main thing we do is we really map the market to identify a good place for the asset portfolio,” he told RenewEconomy. “One asset can be at the mercy of the market … we want to create a portfolio where assets work together in the areas of wind, solar and storage.

“We don’t think this is a bad time to buy if you get the market forecast and grid analysis right.”

CEFC executive director Monique Miller said the green bank’s $75 million foundational commitment to the Oasis fund would help address the need for new investment in utility-scale renewable energy projects, and usher in a large new international player.

“It’s also great to make investments alongside major pension funds, demonstrating a strong opportunity for institutional capital to supply continued demand for exposure to renewable energy investments,” Miller said.

Hostplus head David Elia said the superfund was very interested in supporting the Desert Springs Octopus projects, a partnership between Octopus and the Northern Territory Indigenous Business Network (NTIBN) launched in February to develop renewable opportunities for First Nations Australia.

“Reflects our commitment to Net Zero 2050, and to reconciliation… Desert Springs Octopus [is] aims to support our indigenous peoples to reduce their dependence on fossil fuels and help create other investment opportunities, new jobs, training, local procurement and cultural benefits,” said Ella.

“Importantly, this opportunity further diversifies our portfolio, an important aspect of delivering sustainable long-term returns for our members.”

#Octopus #launches #billion #renewable #energy #platform #buys #Australias #largest #solar #farm