Fund will continue to seek opportunities in the offshore wind sector that best fit the scale and flexibility of its capita
Canada Pension Plan Investment Board (CPP Investments) has completed the sale of its 24.5 percent ownership in two German offshore wind farms, Hohe See and Albatros. These wind farms, situated approximately 100 kilometres off the German North Sea coast and operational since 2019 and 2020, generate a total of 2.5 million megawatt hours of electricity for over 700,000 households.
The announcement was made by the fund’s wholly owned subsidiary CPPIB Renewables Europe S.à.r.l.
CPP Investments initially acquired these wind assets as development projects from Enbridge in 2018 as part of a broader renewable power partnership, which included North American onshore renewable power projects. This portfolio involved 14 long-term, fully contracted operating wind and solar assets across four Canadian markets and two operational assets in the US.
Despite this divestment, CPP Investments maintains its commitment to renewable energy in pursuit of its ambitious goal to amass C$130 billion in transition and green assets by 2030. The fund’s most recent sustainability report, released in October 2023, reveals that its sustainable portfolio has surged to C$79 billion, indicating a promising trajectory toward achieving its C$130 billion target.
“Since our initial investment in these assets in 2018, the European offshore wind market has continued to mature and we've realized solid returns during our ownership,” says Bill Rogers, managing director, global head of sustainable energies at CPP Investments. “The renewable energy sector, and offshore wind specifically, remains an important investment strategy for us,” Rogers added. “We will continue to seek opportunities in the sector that best fit the scale and flexibility of our capital.”
The net proceeds from the transaction are expected to be C$374 million, with expectations of finalization by the end of 2023. In February 2023, CPP Investments collaborated with international asset management group IKAV in a venture to acquire California-based energy producer Aera Energy LLC. As of June 30, 2023, the fund's total value stood at $575 billion.
