Nordic-based pension funds AP Pension, PensionDanmark and KLP are among the first round of investors in what is set to be the largest renewable energy fund globally, having already reached €1.5bn.

Copenhagen Infrastructure Partners’ (CIP) Copenhagen Infrastructure IV (CI IV) has a target fund size of €5.5bn. However, due to strong appetite from institutional investors it is expected to achieve capital commitments of €5bn-€7bn and invest €10bn-€14bn in greenfield renewable energy infrastructure across North America, Western Europe, developed Asia and Australia.

PensionDanmark has invested with CIP since it was established in 2012, when it was a sole investor. Its CEO, Torben Möger Pedersen, said the provider has had a “very satisfactory collaboration” with CIP and is “delighted” to continue.

“We look forward to benefit once again from CIP’s profound knowledge in our joined effort to invest in renewable energy infrastructure. Our investment will gene¬¬rate great value for our members and at the same time make a substantial contribution in the struggle to achieve the climate goals on a global level.”

AP Pension CEO, Bo Normann Rasmussen, said he the provider is “proud” to be part of the world’s largest renewable energy infrastructure fund. It has invested €335m in the fund, which Rasmussen said is a “big step” towards fulfilling its ambition to contribute to the green transition.

In addition, KLP SVP of risk management and allocation, Harald Koch-Hagen, said: “This new investment is a part of our effort to find attractive investment opportunities that are characterized by stability and predictability for KLP’s customers.”

Among the Nordic pension investors, the fund, which reached its first close on 15 June 2020, also saw capital commitments from other pension and life insurance companies, and large family offices. In addition, several other prominent institutional investors are in the process of committing to CI IV, including investors from among others the Nordics, Continental Europe, UK, Israel, North America, Asia and Australia.

CIP managing partner, Jakob Baruël Poulsen, said: “We are very pleased to reach first close of CI IV with a mix of existing and new blue-chip institutional investors committing to the fund. We are honoured by the continued investor confidence in CIP’s approach to energy infrastructure investments and look forward to continuing to create value for our investors, project owners, and local communities through the fund’s investments.

“The market timing is favorable for greenfield renewable infrastructure investments, and the fund and CIP are well positioned to capture the attractive market opportunity with significant visibility of the investment pipeline and a high degree of execution certainty delivered by a large team of experienced industrialists.”

The investment strategy is a continuation of its predecessor funds Copenhagen Infrastructure I, II and III, and is tailored to institutional investors with a long-term investment horizon. The fund will focus on greenfield investments within core energy infrastructure.

It has a global reach and will diversify investments across technologies such as contracted offshore wind, onshore wind, solar PV, transmission, storage, waste-to-energy and biomass assets in low risk OECD countries in Western Europe, North America and developed Asia Pacific.

The investments of the fund are expected to have a significant positive environmental impact (including CO2 reduction) and create high quality jobs in the local communities of the assets. With the establishment of CI IV, CIP’s total portfolio of investments are estimated to save the equivalent of approximately 10-11 million tonnes of CO2 each year and sustainably power approximately 5-6 million households across the globe.

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