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Craig Richard of Windpower Monthly reports that Corio Generation takes on Canadian pension fund for 9GW offshore wind JV:

Newly launched offshore wind developer Corio Generation has
agreed to form a joint venture (JV) with a Canadian investor to support
the development of up to 9GW of capacity worldwide.

Corio – a new standalone offshore wind developer created by Macquarie’s Green Investment Group – is due to partner with infrastructure investor Ontario Teachers’ Pension Plan.

Their project pipeline consists of 14 fixed-bottom and floating offshore wind projects in South Korea, Taiwan, Japan, Ireland and the UK. The 9GW included in the JV with Ontario Teachers’ forms the majority of Corio’s planned 15GW of offshore wind development.

Ontario Teachers’ has agreed to invest up to US$1
billion in development capital to acquire up to half of Corio’s stake in
each of the 14 projects.

Corio explained that the
investment from Ontario Teachers’ – which has C$26.1 billion (US$20
billion) invested in infrastructure assets worldwide, including
renewable energy projects – will give the developer “deeper access to
long-term institutional capital”.

The transaction is expected to close in the third quarter of 2022 subject to customary closing conditions and regulatory approvals.

Razak Musah Baba of IPE Real Assets also reports that Ontario Teachers’ and Corio have teamed up to develop offshore wind projects:

A new offshore wind business launched by Macquarie’s Green Investment Group has teamed up with Ontario Teachers’ Pension Plan Board to develop offshore wind projects.

Corio Generation has partnered with the C$242bn (€180.4bn) Ontario
Teachers’ pension fund to finance the development of an initial
portfolio of up to 9GW in wind projects.

 

Ontario Teachers’ will invest up to US$1bn (€950.2m) in development capital, the companies said in a joint statement.

The partnership’s portfolio will consist of 14 fixed bottom and
floating projects in South Korea, Taiwan, Japan, Ireland and the UK, all
of which are currently under development by UK-headquartered Corio.

As part of the partnership, Ontario Teachers’ will acquire up to half
of Corio’s stake in these projects, supporting development,
construction and operation.

The companies said they will also explore opportunities to expand the
partnership through the creation or acquisition of new projects.

Jonathan Cole, the CEO of Corio Generation, said: “This partnership
with Ontario Teachers’ represents a highly significant milestone on our
journey and demonstrates Corio’s capability to bring together a
large-scale global portfolio, a team of industrial experts and
world-class investment partners
. With this collaboration with Ontario
Teachers’, Corio will generate vast amounts of clean, affordable
electricity and support thousands of green jobs, while providing
attractive returns on investment.”

Chris Ireland, greenfield investments and renewables, infrastructure
and natural resources managing director at Ontario Teachers’ said:
“Offshore wind is poised for significant growth in the years ahead as
countries work towards ambitious decarbonization goals. This has been a
strategic focus sector for Ontario Teachers’ for several years and is a
natural fit in our portfolio as we work towards our net-zero targets.”

OTPP put out a press release on this mega deal with Corio Partners:

  • Corio Generation partners with Ontario Teachers’ Pension Plan to support the development of up to 9GW of offshore wind worldwide  
  • Ontario Teachers’, one of the world’s largest institutional investors, will invest up to US$1 billion in development capital    
  • This collaboration enhances Corio’s long-term partnership approach by providing deeper access to long-term institutional capital

Newly launched Corio Generation (Corio) has entered into a joint
venture with leading global investor Ontario Teachers’ Pension Plan
Board (Ontario Teachers’) to fund the development of an initial
portfolio of up to 9 GW offshore wind projects.

The portfolio will consist of 14 fixed bottom and floating projects
in South Korea, Taiwan, Japan, Ireland and the UK, all of which are
currently under development by Corio. Ontario Teachers’ will acquire up
to half of Corio’s stake in these projects, supporting development,
construction and operation. Corio and Ontario Teachers’ will also
explore opportunities to expand the partnership through the creation or
acquisition of new projects. In total, the partnership announced today
represents an investment of up to US$1 billion in development capital
from Ontario Teachers’.

Ontario Teachers’ is a major infrastructure investor with C$26.1
billion in infrastructure assets across five continents
, including a
sizeable portfolio of renewable assets. As a long-term, responsible
investor, it is an ideal partner to invest alongside Corio.

Corio Generation, a Green Investment Group portfolio company, is a
specialist offshore wind business and home to one of the world’s largest
offshore wind development portfolios. By combining a unique blend of
sector-leading expertise with deep access to institutional capital,
Corio applies a long-term partnership approach to the creation and
management of projects.

Subject to the satisfaction of customary closing conditions and
regulatory approvals, the transaction between Corio and Ontario
Teachers’ is expected to reach completion in Q3 2022.

Jonathan Cole, CEO of Corio Generation, said: “Corio
Generation is committed to accelerating the global deployment of
renewable energy by delivering its global portfolio of offshore wind
projects. This partnership with Ontario Teachers’ represents a highly
significant milestone on our journey and demonstrates Corio’s capability
to bring together a large-scale global portfolio, a team of industrial
experts and world-class investment partners. With this collaboration
with Ontario Teachers’, Corio will generate vast amounts of clean,
affordable electricity and support thousands of green jobs, while
providing attractive returns on investment.”

Chris Ireland, Managing Director, Greenfield Investments and
Renewables, Infrastructure and Natural Resources at Ontario Teachers’
said
: “We are pleased to partner alongside Corio and support
the development of a high-quality, global portfolio of offshore wind
projects. Offshore wind is poised for significant growth in the years
ahead as countries work towards ambitious decarbonization goals
. This
has been a strategic focus sector for Ontario Teachers’ for several
years and is a natural fit in our portfolio as we work towards our
net-zero targets.”

Corio has been established at a time when the demand for green
electricity continues to rise – with the total capacity of offshore wind
farms expected to reach 228 GW in 2030. This requires greater
collaborative action from businesses and governments around the world as
well as around US$500 billion of investment in offshore wind by 2030.

Ontario Teachers’ has committed to achieving net-zero greenhouse gas
emissions across its portfolio by 2050. It has also set ambitious
interim reduction targets to reduce portfolio carbon emissions intensity
by 45% by 2025 and 67% by 2030, compared to a 2019 baseline.

About Corio Generation  

Corio Generation is a specialist offshore wind business, dedicated to
harnessing offshore wind energy worldwide. With a unique blend of
sector-leading expertise and deep access to long-term capital, we apply a
long-term partnership approach to the creation and management of
projects, taking them from origination, through development and
construction, and into operations.

Our 15 GW development portfolio is one of the largest in the world,
spanning established and emerging markets, as well as floating and
traditional fixed-bottom technologies
. These next generation offshore
wind projects will help form the backbone of the net-zero global energy
system while meeting the energy needs of communities and corporate
offtakers sustainably, reliably, safely and responsibly.

Corio Generation is a Green Investment Group (GIG) portfolio company,
operating on a standalone basis. GIG is a specialist green investor
within Macquarie Asset Management, part of Macquarie Group. For more
information visit coriogeneration.com and follow us on Twitter @CorioGeneration

About Ontario Teachers’  

Ontario Teachers’ Pension Plan Board (Ontario Teachers’) is a global
investor with net assets of C$241.6 billion as at December 31, 2021. We
invest in more than 50 countries in everything from equities to real
estate to infrastructure and venture growth, to deliver retirement
income for 333,000 current and retired teachers in Ontario.

With offices in Hong Kong, London, San Francisco, Singapore and
Toronto, our more than 350 investment professionals bring deep expertise
in industries ranging from agriculture to artificial intelligence. We
are a fully funded defined benefit pension plan and have earned an
annual total-fund net return of 9.7% since the plan’s founding in 1990.
At Ontario Teachers’, we don’t just invest to make a return, we invest
to shape a better future for the teachers we serve, the businesses we
back, and the world we live in. For more information, visit otpp.com and follow us on Twitter @OtppInfo.

This is a huge deal for Ontario Teachers’ Pension Plan, one that will place it at the forefront of institutional investors investing in offshore wind projects.

OTPP has agreed to invest up to US$1
billion in development capital to acquire up to half of Corio Generation’s stake in
each of the 14 fixed bottom and
floating projects in South Korea, Taiwan, Japan, Ireland and the UK, all
of which are currently under development by UK-headquartered Corio.

Moreover, the companies said they will also explore opportunities to expand the
partnership through the creation or acquisition of new projects.

OTPP couldn’t have picked a better partner for this sizable investment.

Corio Generation is a new standalone offshore wind developer created by Macquarie’s Green Investment Group (GIG) back in March:

Macquarie’s Green Investment Group (GIG) has sold its entire stake in
Formosa I International Investment as it also announced plans to launch a
standalone specialist offshore wind business, Corio Generation (Corio).

GIG has sold its 25% stake in its Formosa I International
Investment, which operates the Formosa 1 offshore wind farm off
Taiwan’s Miaoli County, comprising the 8MW Formosa 1 (pilot phase) and 120MW Formosa 1 Phase 2 .
The sale is to a Japanese consortium comprising Japan’s Mitsui OSK
Lines (MOL), Toho Gas, and Hokuriki Electric Power Company. MOL said the
three companies are in the process of setting up a special purpose
company in Taiwan.

“The transaction is expected to complete after all the
necessary procedures including approvals from the Taiwanese
authorities,” MOL said. This will be the first investment for them
outside Japan’s offshore wind sector, it added.

Corio offshore plan

Meanwhile, GIG announced further details of its standalone offshore business.

Led
by wind industry stalwarts Jonathan Cole as CEO and Samuel Leupold as
chairman, Corio will be headquartered in the UK, with offices in London
and Edinburgh. Its operations – taking over from GIG directly to
progress its project pipeline of over 15 GW – are due to start in April
2022. Leupold will simultaneously maintain his position as GIG’s
chairman of offshore wind energy.

Some 100 staff will be
transferred from GIG into the new business, with a further recruitment
drive planned for the coming year. The existing portfolio they will
oversee includes previously announced projects in the UK, Europe,
Taiwan, Korea, and Australia. As well as moving these forward, Corio
will seek new business opportunities in the market too, notably in the
Americas, it said. Corio will “take projects from origination, through
development and construction, and into operations”, which will be
“underpinned by access to long-term capital sourced both within Macquarie and from third parties”, GIG said.

‘Unique opportunity’

Cole was previously head of offshore wind at Iberdrola.
“I am hugely excited by this unique opportunity to lead a business that
combines some of the world’s best financial and industrial expertise,”
he said. “I believe that Corio will play a significant role in
accelerating the deployment of offshore wind around the world
. From day
one, we will be able to work with partners, suppliers and investors to
deliver a major project pipeline that will not only provide vast
quantities of clean affordable electricity but will also support
thousands of green jobs
.”

Now, you understand why OTPP is forking over US $1 billion to develop and operate up to 9GW ofoffshore wind projects.

Corio has deep industrial expertise and is led by industry stalwarts, Jonathan Cole, its CEO and Samuel Leupold, its chairman.

It now has a world-class investment manager as a partner to develop these offshore wind projects and I see this deal as just the beginning of a long and fruitful partnership.

Together, OTPP and Corio will not only provide vast
quantities of clean affordable electricity but these projects will also support
thousands of green jobs.

OTPP has committed to achieving net-zero greenhouse gas emissions across its
portfolio by 2050. It has also set ambitious interim reduction targets
to reduce portfolio carbon emissions intensity by 45% by 2025 and 67% by
2030, compared to a 2019 baseline.

This is exactly the type of mega deal that checks off al the right boxes:

  • Partnering up with an industry leader to develop offshore wind projects which are in huge demand all over the world
  • Collecting nice cash flows from these greenfield development projects once they’re built for a very long time, better matching their long-dated liabilities
  • Having an inflation-adjusted premium built into the clauses of the contracts which are highly regulated
  • Investing in sustainable energy to achieve net-zero greenhouse gas emissions across its
    portfolio by 2050 and
    to reduce portfolio carbon emissions intensity by 45% by 2025 and 67% by
    2030, compared to a 2019 baseline.

But what I really like about this deal is it demonstrates how strong OTPP’s global brand truly is and what a strong long-term partner it is.

Corio was probably approached by many institutional investors to develop these offshore wind projects but it chose OTPP for a reason and that just speaks volumes.

OTPP won’t just bring deep pockets, it’s also bringing its financial and infrastructure expertise, immense network and vast portfolio of companies and specialized platforms.

I’ll wrap it up there but this is an exciting and huge deal for Corio, OTPP and its members, one that is part of the ongoing energy transition taking place throughout the world.

Below, an older (2017) clip where Jonathan Cole, then Offshore Managing Director at ScottishPower Renewables,
now CEO of Corio, talked to World Energy TV about ScottishPowers expanding portfolio of offshore wind.

Second, in order to promote the introduction of offshore wind power in Japan, it is necessary to develop technology for floating offshore wind power systems as well as fixed-bottom offshore wind power systems.

NEDO develops low-cost floating offshore wind power systems which are suitable for the meteorological and oceanic conditions of Japan’s coastal areas. They can be installed in offshore areas where the water depth is about 50 meters, relatively shallow for floating-type systems. Watch the demonstration project of next-generation floating offshore wind turbines (2018).

Also, a wind farm off the coast of Yorkshire, set to become the world’s largest, has generated electricity for the first time.

The turbines are being constructed 75 miles out to sea and will be able to power the equivalent of a million homes once it has been fully built.

Lastly, conducted by offshore wind expert Walt Musial, this webinar provides a high-level
overview of existing floating offshore wind technology and the prospects
of a United States offshore wind market.

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