Today, the Canada Pension Plan Investment Board (CPPIB) announced it is combining its Energy & Resources and Power & Renewables groups to launch a new investment group. In fact, the new group is called the Sustainable Energy Group (SEG) that will have approximately CAN$17.7 billion in assets under management.
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CPPIB on launching the Sustainable Energy Group
The CPPIB, a US$378.4 billion board, announced today it will combine its Energy & Resources and Power & Renewables groups to launch a new investment group. Accordingly, this new group is called the Sustainable Energy Group. In fact, this will have approximately CAN$17.7 bn in assets under management (AUM).
Moreover, the new group will be led by Power & Renewables’ managing director Bruce Hogg. Therefore, he will assume the title of managing director, head of Sustainable Energy Group. In fact, Mr. Hogg joined CPPIB in 2007 as managing director, head of infrastructure, Americas.
“The creation of the Sustainable Energy Group with significant, flexible capital positions us extremely well to pursue the best market opportunities across the entire energy spectrum,” Hogg said in a statement. Therefore, “this, coupled with a deep, highly experienced team, will allow SEG to generate significant long-term value for the fund.”
Indeed, approximately SEG’s CAN$17.7 billion in assets under management, CAN$9.2 billion comes from the former Power & Renewables unit. On the other hand, the remaining CAN$8.5 billion comes from the former Energy & Resources unit.
Moreover, CPPIB said Avik Dey, managing director, head of Energy & Resources, will act as senior adviser to the board over the next six months.
About the Group
Notably, the Sustainable Energy Group will have five key sub-sector strategies: power and renewables, energy midstream, commodities, alternative fuels, distributed energy and services, and innovative technology and services.
On the other hand, the power and renewables group currently includes renewable power generation; for instance, onshore/offshore wind, solar, and hydropower. Besides, it contains grid-scale battery solutions and thermal power generation. The energy midstream sub-sector includes traditional energy midstream, liquefied natural gas, carbon capture, and sequestration.
CPPIB’s investment examples include Wolf Midstream, an investment vehicle launched in 2015. In fact, it managed investments in midstream energy infrastructure assets in Western Canada. Also, CPPIB invested in Pattern Energy, a US-based independent renewable energy company. For instance, with 3.4 gigawatts of operating wind and solar projects in North America and Japan.