Pension plan partners with Power2X for a low-carbon future
Canada Pension Plan Investment Board (CPP Investments) and Power2X, a hydrogen project developer, have announced their partnership to fund the latter’s green molecule projects.
This long-term investment partnership aims to support Power2X’s vision to become a leading developer, owner, and operator of next-generation energy assets with a focus on green hydrogen and other clean molecules, such as green methanol and ammonia.
Power2X has been developing extensive new energy assets and infrastructure to play a vital role in decarbonizing industrial value chains. Green molecules can be used as a replacement for process feedstocks or transportation and heating fuels.
“The need for industrial decarbonization 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,” said Bruce Hogg, managing director, head of sustainable energies at CPP Investments.
“Working with CPP Investments will enable us to accelerate our ambition to become a leader in green molecules, and, in doing so, continue on our journey as a long-term and serious player in this critical arena of global sustainability,” said Occo Roelofsen, CEO at Power2X.
Roelofsen also shared Power2X’s active projects, including a €1 billion industrial-scale hydrogen and green ammonia project. The initial investment of €130 million will go toward the expansion of Power2X as a development platform and fund green molecule projects.
CPP Investments is an investment management organization that invests the CPP to ensure its sustainability in the long term. According to Reuters, CPP Investments manages $570 billion in assets for Canadians.
The Canadian pension fund has voiced its commitment to seeing a low-carbon future. It has a diverse portfolio comprising assets in power generation, renewable and conventional energy, and carbon capture.
“Investing in Power2X is fully aligned with our ambition to play a leading role in the energy transition,” said Hogg.
