Canadian pension fund The Canadian pension fund Caisse de dépôt et placement du Québec (CDPQ) confirmed to Net Zero Investor its making further inroads in Spain's solar energy investment space.
Velto Renewables, a fully-owned subsidiary of the C$424 billion Québec-based CDPQ, is in the process to develop a 1-GW solar pipeline, together with Netherlands-based Kenergy Ventures.
Lucas de Haro, managing director at CDPQ-owned Velto, called the "investment a significant milestone as we work to grow our portfolio."
"Velto and Kenergy decided to combine their development, financial, technical and operational expertise to jointly execute projects currently in their early stage," Madrid-based de Haro said.
He declined to reveal financial details of the project or the size of the investment.
Velto, formerly known as CDPQ Renewables Iberia, owns and runs 76 solar PV assets in Spain and has offshore wind activities in the UK.
The company was launched three years agoafter the Canadian pension fund snapped up a 216-MWp solar portfolio from Spanish energy provider Q-Energy. Following the deal, CDPQ created a new hub in Spain.
Net Zero Investor's Annual Conference | 11th December 2023 | London
$150 million allocation in Sweden
The investment comes less than a week after CDPQ told Net Zero Investor it is following a range of pension funds by joining Sweden's Northvolt as an investor.
It allocated C$200 million, around $150 million to the integrated battery platform, Kim Thomassin, executive vice-president and head of the Québec office at CDPQ, confirmed to this publication.
CDPQ joined a number of other Canadian pension funds that have already invested in the electric-vehicle battery maker, including Investment Management Corporation of Ontario, Canada Pension Plan Investment Board, and OMERS.
"The investment is a significant milestone as we work to grow our portfolio."
Clean energy drive
CDPQ is increasingly allocating funds to renewables and other clean energy firms.
Bertrand Millot, head of sustainable investment at the pension fund, recently discussed the retirement scheme's investment priorities with Net Zero Investor.
"We are investigating other potential sectors such as carbon capture, green cement and steel to eventually be in a position to invest in them, but only once they are sufficiently mature to meet our risk-return criteria."
He said that, in addition, CDPQ is playing a key role in pushing portfolio companies to reduce their emissions.
"We own large stakes in power companies that have, after we invested, been certified as aligned with net zero ambition. They were able to do so by replacing their fossil fuelled generators with renewables," Millot shared.
Also read
Mercer: asset owners still in ‘early stages of setting climate targets’
