Investment giant, APG, commits over half a billion dollars to renewable energy efforts by Octopus Australia
Australia is positioning itself as a leading destination for long-term, sustainable infrastructure investment, and the latest move by APG Asset Management underscores this trend. The Dutch pension fund giant has committed over $1 billion (A$1bn) to Octopus Australia's Sustainable Investment Fund (OASIS), a flagship renewable energy investment platform.
OASIS, a leading renewable energy developer and fund manager in Australia, targets investment opportunities in wind energy, utility-scale solar, and battery storage. The fund's portfolio derives revenue from long-term energy sale contracts as well as wholesale energy trading.
The partnership between APG and Octopus Australia reflects confidence in the country's renewable energy roll-out. According to Hans-Martin Aerts, head of infrastructure and private natural capital across Asia Pacific at APG, the decision to partner with Octopus Australia is a result of a thorough review, attracted by its strong alignment in purpose, integrated development approach, and track record in decarbonizing Australia’s energy mix.
The investment by APG in OASIS is subject to regulatory approvals. If approved, it will be one of the most substantial institutional investments supporting Australia’s clean energy infrastructure to date. Octopus Australia’s CEO, Sam Reynolds, highlighted this as a transformational moment for both the company and the broader Australian energy landscape.
Reynolds also commented that being chosen as the local partner by a global investor like APG is a powerful endorsement of their strategy and team. The target total return from OASIS is set at 10-12% per annum.
The investment by APG aligns with its Climate Action Plan, initially published in December 2022. The plan includes a commitment to not only achieve net zero portfolio emissions by 2050 but also increase climate solutions investments over time in line with emissions reduction targets set by its pension fund clients.
Other investors in OASIS include Australian superannuation funds Rest and Hostplus, as well as Australia's government-backed Clean Energy Finance Corporation. The partnership between APG and Octopus Australia aims to drive meaningful impact on critical climate priorities.
The investment comes as the Albanese government aims to reduce emissions by 43% and increase the share of renewable energy to 82% by 2030. With the support of policy tailwinds such as the capacity investment scheme and a 'generational shift' in climate disclosures, Australia's net zero pathway is looking promising.
APG manages over €590bn on behalf of over 4m pension fund participants, making it one of the world's largest pension fund investors. With this significant investment in OASIS, APG is demonstrating its commitment to sustainable infrastructure and clean energy transition in Australia.
In summary, the partnership between APG and Octopus Australia is a significant step forward in Australia's renewable energy sector. The investment by APG in OASIS will help scale Octopus Australia's growing pipeline of renewable projects, accelerating Australia's energy transition while delivering long-term returns.
- Australia, with its promising renewable energy horizon, has drawn the attention of leading investors, as evidenced by APG Asset Management's $1 billion investment in Octopus Australia's Sustainable Investment Fund (OASIS).
- OASIS, a key player in Australia's renewable energy sector, focuses on investments in wind energy, utility-scale solar, and battery storage, generating revenue through long-term energy sale contracts and wholesale energy trading.
- APG's decision to partner with Octopus Australia was driven by a comprehensive review, attracted by the fund's strong alignment in purpose, integrated development approach, and track record in decarbonizing Australia’s energy mix.
- The investment by APG in OASIS is not only aligned with its Climate Action Plan but also aims to drive meaningful impact on critical climate priorities, contributing to Australia's target of reducing emissions by 43% and increasing renewable energy to 82% by 2030.
