Cbus Super will take an equity stake in Atmos Renewables, one of Australia’s leading renewable energy generators, in a move to deliver sustainable returns for members while supporting Australia’s energy transition, according to the fund.
The partnership with existing Cbus investment manager Igneo Infrastructure Partners will give members greater exposure to a diverse range of renewable energy assets and support new developments.
Atmos has 18 renewable assets in operation and under construction with a combined capacity of 1.5GW, enough to power about 775,000 homes or a city larger than Adelaide.
Its projects span the National Electricity Market and Wholesale Electricity Market, with sites in Queensland, New South Wales, Victoria, Tasmania, South Australia and Western Australia.
Igneo will maintain decision-making control of Atmos, which it established in 2020 to invest in renewable projects at different lifecycle stages.
Cbus’ direct investment, along with capital from other investors, will support two landmark developments.
The first is the 100MW/400MWh Merredin Battery Energy Storage System in Western Australia, Atmos’ first greenfield development and battery project to reach financial close (artist impression pictured).
The A$220m project is expected to create 70 jobs during construction and will enhance regional grid stability and energy security, with operations due to begin by mid-2027.
The second is the full acquisition of the 316MW Hornsdale wind farm in South Australia, increasing Atmos’ stake from 23.4% to 100% to strengthen its contracted income base.
Cbus chief investment officer Leigh Gavin said: “Atmos’ geographic diversity, long-term contracts and potential development pipeline make it a highly attractive investment.”
He added: “First and foremost, we believe this investment will stack up on returns, but also has the additional benefit of supporting a sustainable energy future for Australians.”
“Atmos’ leadership in wind, solar, and now energy storage, under Igneo’s management, makes them ideal partners as we continue our commitment to renewable energy and support for Australia’s energy transition,” he said.
“As well as providing long-term investment returns, the investment supports Australia’s renewable energy industry, a sector that employs many Cbus members. And importantly our portfolio gains more exposure to Australia’s energy transition via a diverse range of renewable energy assets.”
Cbus has over A$2.1bn invested in renewables and enabling infrastructure, reinforcing its commitment to the energy transition, the fund said.