Norwegian pension fund KLP has invested NOK 2bn (€198m) in the Quinbrook Net Zero Power Fund, as part of its commitment towards investing at least NOK 6bn (€595m) each year in climate-friendly investments.

The Quinbrook fund invests in solar power with battery systems and in green data centres in the USA, UK and Australia. American companies Primergy and Rowan Digital Infrastructure represent at least two thirds of the investments in the fund.

Primergy is a developer, owner and operator of solar power and battery systems in the United States. The company has a presence in several states such as California, Nevada, Colorado, Virginia and Texas.

It is expected that the US market for solar power, together with battery capacity, will rise rapidly in the coming years. Rowan Digital Infrastructure is working to find locations to create "green" data centres in the United States.

KLP's capital injection will allow the Quinbrook fund to extend its capacity, while also providing KLP with geographical diversification within its portfolio.

KLP director of risk management and allocation, Harald Koch-Hagen, says that KLP was impressed by Quinbrook's results in creating value and managing risk on behalf of its partners. "They have created strong and good platforms that should be able to provide investors with a stable and predictable return," he said.

Norway's largest pension fund, which manages assets for Norway's healthcare system providers, has now invested NOK 56.7bn (€5.6bn) in climate-friendly investments since 2017.

"Energy production must be adjusted in a renewable direction," said KLP director of social responsibility, Heidi Finskas.

"It is absolutely necessary to reduce CO2 emissions and fulfill the ambitions of the Paris Agreement, which KLP has a stated goal of contributing to. The energy situation we see in the world now is another signal of how important it is to produce more clean energy.

"It is therefore right and important for us to continue investing in climate-friendly and renewables."

Share Story: