By Nick Hedley
Australia’s Cbus Super, which manages A$73.5 billion (US$53.4 billion) on behalf of 850,000 members, has bought a 10% stake in the country’s most progressed offshore wind project.
The Star of the South project belongs to Copenhagen Infrastructure Partners (CIP), which calls itself the world’s largest fund manager focused on greenfield renewable energy.
“Star of the South is a landmark investment for Australian superannuation into the local offshore wind sector. It will support, establish and grow the offshore wind industry in Australia, while assisting the Victorian Government’s commitment to a net-zero emissions economy,” Kristian Fok, chief investment officer at Cbus, said in a statement.
This is the first direct investment in offshore Australian wind by Cbus, which is focused on workers in the building, construction and allied industries.
The project will be located off the south coast of Gippsland, in the state of Victoria, with a capacity of up to 2.2GW. It will power up to 1.2 million homes and supply 20% of the state’s electricity needs. The Victorian government is targeting 9GW of offshore wind capacity by 2040.
“The transaction highlights the significant potential of offshore wind in Australia, with the opportunity for Victoria to be a leader in the significant global growth of offshore wind,” said Michael Hannibal, partner at CIP.
At the COP26 climate conference last year, CIP said it aimed to deploy €100 billion into green energy projects by 2030.
CIP manages 10 funds and €18 billion worth of assets on behalf of about 120 international institutional investors based in Europe, the U.K., the Asia-Pacific, and North America.