Octopus Australia has launched a multi-billon dollar renewable energy platform for institutional and wholesale investors.
Octopus has simultaneously closed two funds, collectively worth A$10bn (€6.7bn) which are co-investing into a renewable energy portfolio.
The Octopus Australia Sustainable Investments (OASIS) Fund, open to institutional investors, and the Octopus Renewable Energy Opportunities (OREO) Fund, open to wholesale investors, have access to the entire Octopus Australia utility scale energy and storage portfolio.
The 333MW Darlington Point Solar Farm, Australia’s largest operational solar project located in NSW, is the first project to be jointly acquired by OASIS and OREO.
Octopus’s platform, set-up to manage Australia’s energy transition, will finance the entire renewable energy life cycle from development, through construction and into long-term operations.
Currently the secured portfolio sits at A$3bn across wind, solar and storage, with a visible pipeline of an additional A$5bn.
Further information on the next acquisition by Octopus Australia will be announced shortly.
Amongst OASIS’s institutional investors are superannuation fund Hostplus, the Clean Energy Finance Corporation (CEFC) and Octopus Renewables’ Sky Fund (which is backed by leading European institutional investors).
The Octopus Australia platform will also support and fund projects that are generated from our JV and Indigenous-owned renewable energy company, known as Desert Springs Octopus.
Desert Springs Octopus brings renewable energy and other infrastructure opportunities to First Nations Australians across Australia.
Octopus Australia managing director Sam Reynolds said: “We are very pleased to launch this unique platform for Australian institutional and wholesale investors to participate in Australia’s renewable energy future.
“We’re thankful to continue our relationship with Hostplus, CEFC and the Sky Fund.
“The Octopus Group’s approach to investing in renewable energy has developed globally over the last 15 years.
“As such, we saw early on the massive opportunity in Australia and how a portfolio approach to the market could align our institutional customers (in OASIS), alongside our family office and advised investors (in OREO) to create defensible and sustainable value into the future.”
CEFC executive director Monique Miller said: “Australia needs significant renewable energy build-out to tackle the task of decarbonising the grid and meeting our net zero targets.
“Our A$75m cornerstone commitment into the OASIS fund will help address the need for new investment in utility-scale renewable energy projects, and facilitates the entry of a major global fund manager into the Australian market.
“It’s also great to be making the investment alongside key superannuation funds, showing the strong opportunity for institutional capital to supply the ongoing demand for exposure to renewable energy investment.”
Hostplus chief executive David Elia said: “We are really pleased to further strengthen and extend our existing relationship with Octopus Australia by participating in the launch of their new renewable energy platform.
“Australia, like the rest of the world, is on the cusp of a significant energy transition and we look forward to being involved in the entire life cycle of investment opportunities that this brings.
“Reflecting our commitment to both Net Zero 2050, and to reconciliation, we are particularly excited to help support and finance projects developed by the Desert Springs Octopus – aimed at supporting our indigenous communities to reduce their reliance on fossil fuels and help create other investment opportunities, new jobs, training, local procurement and cultural benefits.
“Importantly, this opportunity further diversifies our portfolio, an important aspect in the delivery of sustainable long term returns for our members.”