Climate Investment Coalition showcases best practice business and finance models in order to inspire investors and developers around the world

Climate Investment Coalition is collecting best practice business models from leading institutional investors to showcase proven successful examples and scale best practice globally.

Best Practice Business Models

Atlas Renewable Energy - Industriens Pension

Atlas Renewable Energy is a +800 MW (operational) solar energy platform across Latin America with a target capacity of 1.2 GW providing more than 890,000 families with green energy and reducing CO2-emissions with almost 750,000 tons of CO2.

Asset classes
• Infrastructure fund and co-investment

Value in US dollars
• Confidential

Geographic location
• 12 sites in Latin America (Chile, Mexico, Brazil, Uruguay)

Green Dimension(s):
• Clean Energy Production

Expected Maturity
• -

Partners
• Actis Energy, our long-term fund manager in growth markets

Form of Funding
• Financed with a combination of equity and debt

Gode Wind 2 - Industriens Pension

The offshore wind farm Gode Wind II comprise of 42 turbines with a total capacity of 252 MW and provides 260,000 households with renewable energy.

Asset classes
• Direct infrastructure investment

Value in US dollars
• USD 145 mil.

Geographic location
• Gode Wind II wind farm is located in the North Sea approximately 45 km off the German coast.

Green Dimension(s):
• Clean Energy Production

Expected Maturity
• -

Partners
• Direct investment together with several partners including AIP Management and Ørsted

Form of Funding
• Financed primarily with equity

Lekela Power - Industriens Pension

Lekela Power is a pan-African renewable energy (wind and solar) platform set to deliver 1.3 GW of renewable energy across Africa. Besides providing green energy Lekela invest in the local communities to build a lasting positive impact and social dividend; projects that seek to improve local education, develop local enterprise and protect the local environment.

Asset classes
• Infrastructure fund and co-investment

Value in US dollars
• Confidential

Geographic location
• 8 sites across Egypt, Ghana, South Africa and Senegal

Green Dimension(s):
• Clean Energy Production

Expected Maturity
• -

Partners
• Actis Energy, our long-term fund manager in growth markets

Form of Funding
• Financed with a combination of equity and debt

Solar park in California - PenSam

33 km2, 10 x Central Park New York, 1,5 million solar panels, 410 MW, 100.000 American households

Asset classes
• Green energy infrastructure

Value in US dollars
• 75 million

Geographic location
• California, USA

Green Dimension(s):
• Clean energy production (solar park)

Expected Maturity
• 2054

Partners
• AIP
• PKA

Form of Funding
• Equity


Contact
Torsten Fels
CEO
tof@pensam.dk

Walney Wind Farm - PFA, PKA

Construction of an offshore wind farm with a capacity of 659 MW, the wind farm supplies green power to 590,000 homes in the UK. This makes it the world largest offshore wind farm at the time of construction.

PFA owns 25% of the equity in Walney Extension Offshore Wind Farm, PKA acquired a 25 % equity interest from Orsted who still owns 50 % of the wind farm.

Asset classes
• Direct investment

Value in US dollars
• USD 400 million (PFA) USD 470 million (PKA)

Geographic location
• East Irish Sea
• United Kingdom

Green Dimension(s):
• Clean Energy Production

Expected Maturity
• 25 years (PFA) 2042 (PKA)

Partners
• The project is a shared-ownership project between PFA (25%), Ørsted (50%) and PKA (25%).

Form of Funding
• Equity


Contact

PFA contact:
Henrik Nøhr Poulsen
Managing Director – Global Strategic Partnerships
hpo@pfa.dk

PKA contact:

Dewi Dylander

Deputy Executive Director, Head of Sustainable Investments (ESG)

ddy@pka.dk

Misae Solar Park (solar plant) – PensionDenmark

Will supply 60,000 homes with green energy and will avoid the emission of 440,000 tons of CO2 into the atmosphere

Asset classes
• Unlisted equity

Value in US dollars
• USD 320M (CIP III commitment)

Geographic location
• Misae is a 240 MW project located approximately six miles east of the city of Childress, Texas.

Green Dimension(s):
• Clean Energy Production

Expected Maturity
• 30 years

Partners
• CIP III (PD has a 15,4% share)

Form of Funding
• Investment through CIP


Contact
Torben Möger Pedersen
CEO
PensionDanmark
tmp@pension.dk

Dutch State Green Bonds - PKA

In 2020, PKA invested DKK 2.1 billion in Dutch state green bonds. This was a tap up of the original issue, in which PKA invested DKK 1.5 billion.

The green bonds focus on sustainable projects such as renewable energy, energy efficiency, environmentally friendly transport, climate adaptation and sustainable water management.

The Dutch state green bonds support the UN's 17 Global Goals and the Paris Agreement's goal of keeping the global temperature rise below 2 degrees.

Asset classes
• Green bond

Value in US dollars
• USD 522 million

Geographic location
• The Netherlands

Green Dimension(s):
• Climate Mitigation
• Climate adaptation (floodplain restoration, among others)

Expected Maturity
• 30 years

Partners
• -

Form of Funding
• AAA government bond


Contact
Dewi Dylander
Deputy Executive Director, Head of Sustainable Investments (ESG)
ddy@pka.dk

Green Bonds - PenSam

PenSam has invested in green bonds issued by Kommunekredit and World Bank.

Asset classes
• Green Bonds

Value in US dollars
• 70 million

Geographic location
• Global

Green Dimension(s):
• The proceeds from the bonds are invested in different areas like district heating, water management, energy efficiency, renewable energy and clean transportation

Expected Maturity
• 2039

Partners
• World Bank
• Kommunekredit

Form of Funding
• Green Bonds


Contact
Torsten Fels
CEO
tof@pensam.dk

Little Bear & Prospero - PKA


In 2020, PKA invested DKK 1.7 billion in two solar parks in California and Texas: Little Bear and Prospero.

The solar parks have a total capacity of 588MW with an area equivalent to over 1,300 football fields. In total, the parks are expected to generate electricity corresponding to the annual consumption of 280,000 Danish homes.

PKA and PenSam have 50% of the ownership of the parks. PKA accounts for 76.9% of the investment and PenSam's share is 23.1%.

Asset classes
• Green energy infrastructure

Value in US dollars
• USD 245 million

Geographic location
• Andrews County, Texas, USA
• Fresno County, Californien, USA

Green Dimension(s):
• Clean Energy Production

Expected Maturity
• 2055

Partners
• AIP
• Longroad Energy
• Facebook
• US Bank

Form of Funding
• Equity and term loan


Contact
Dewi Dylander
Deputy Executive Director, Head of Sustainable Investments (ESG)
ddy@pka.dk

UK Solar - PFA

Acquisition of 6 UK solar parks with a combined capacity of 30 MW.

One of the solar parks are placed on a Nissan factory site and provides clean energy to the production of Nissans electric cars. The other 5 solar parks deliver clean energy to the local grid.
All 6 parks are fully operational.

Asset classes
• Direct investment

Value in US dollars
• 45 mio.

Geographic location
• UK

Green Dimension(s):
• Clean Energy Production

Expected Maturity
• 25 years

Partners
• The parks are fully owned by PFA.
• The parks were developed and constructed by European Energy

Form of Funding
• Equity

Contact
Henrik Nøhr Poulsen
Managing Director – Global Strategic Partnerships
hpo@pfa.dk

Beatrice Offshore Windfarm Ltd – PensionDenmark

450,000 homes powered

Asset classes
• Unlisted equity

Value in US dollars
• USD 3,1bn

Geographic location
• Outer Moray Firth, United Kingdom

Green Dimension(s):
• Clean Energy Production

Expected Maturity
• 20-25 years

Partners
• CIP I/II owns 35 pct. of the project. Through these funds, PensionDanmark owns approx. 20 pct. of the project.
• Senior executives from the energy industry in cooperation with PensionDanmark founded CIP in 2012.

Form of Funding
• Investment through CIP


Contact
Torben Möger Pedersen
CEO
PensionDanmark
tmp@pension.dk

UN City in Copenhagen (real estate) – PensionDenmark

50.700 m2, architect 3XN

LEED certification Platinum,

The UN City project has achieved 84 out of 110 possible points via energy efficient and environmentally friendly construction.
• Seawater is used to cool the building
• Rainwater is used for the toilets
• Solar system on the roof
• Green roofs with nature plants not requiring artificial watering
• Highly insulated building envelope with low-energy glass
• Use of environmentally friendly products and sourcing of wood and concreate with an 800 km distance.

In 2012, UN City won an EU GreenBuilding Award for New Buildings, after cutting its predicted energy consumption by more than half. With energy use under 50 kWh/m2 a year, the building was granted a Low-Energy Class 1 rating, the most energy efficient according to the Danish building code.

Asset classes
• Direct Investment

Value in US dollars
• USD 330M

Geographic location
• Copenhagen, Denmark

Green Dimension(s):
• Buildings

Expected Maturity
• N.A (but several decades – up to 100 years)

Partners
• PD (45,75%), ATP (45,75%) og By og Havn (8,5%)

Form of Funding
• Direct Investment


Contact
Torben Möger Pedersen
CEO
PensionDanmark
tmp@pension.dk

Elgon Hydro Siti, PFA

Construction of hydro project in Uganda with a total capacity of 21.5 MW.

The Siti projects is two hydropower plant utilizing the hydropower potential of the river Siti as it drops 300m in a series of rapids, in and around the village of Chesoweri on the northern slopes of Mt. Elgon in eastern Uganda.

Expected annual emission reduction is up to 60,000 tonnes of CO2 eq.

Asset classes
• Unlisted Equity

Value in US dollars
• USD 16 million

Geographic location
• Uganda

Green Dimension(s):
• Clean energy production

Expected Maturity
• -

Partners
• DI Frontier Market Energy & Carbon Fund

Form of Funding
• Equity

Contact
Henrik Nøhr Poulsen
Managing Director – Global Strategic Partnerships
hpo@pfa.dk

Hornsea 1 Offshore wind farm - PFA

The Hornsea 1 offshore wind farm will be the largest offshore wind farm in the world. Once officially opened in 2020, it will produce enough energy to power over 1 million homes.

With a capacity of 1.2 gigawatts (GW), Hornsea One will be the world's first offshore wind farm to exceed 1 GW in capacity.

Located off the Yorkshire coast, Hornsea One will span a huge area of approximately 407 square kilometres, which is over five times the size of the city of Hull. The offshore wind farm will use 7 megawatt (MW) wind turbines, with each one 190 metres tall – larger than the Gherkin building in London.

Asset classes
• Direct investment - loan

Value in US dollars
• Mezzanine loan provided by PFA: 320 mio. USD

Geographic location
• UK

Green Dimension(s):
• Clean Energy Production

Expected Maturity
• Loan up to 18 years

Partners
• Hornsea 1 is a joint venture between Ørsted and Global Infrastructure Parthers.
• PFA is the sole provider of a mezzanine loan to Global Infrastructure Partners

Form of Funding
• Mezzanine loan

Contact
Henrik Nøhr Poulsen
Managing Director – Global Strategic Partnerships
hpo@pfa.dk

MSCI AC Climate Change - PenSam

PenSam is changing the benchmark for the listed equity portfolio from MSCI AC to MSCI ACWI Climate Change, leading to a much more climate friendly equity portfolio with a lover CO2 emission.

Asset classes
• Listed equity

Value in US dollars
• Total equity portfolio 5 bn. USD

Geographic location
• Global

Green Dimension(s):
• The portfolio will be more exposed to companies that are making solutions towards and participating in the green transition

Expected Maturity
• -

Partners
• MSCI

Form of Funding
• Equity


Contact
Torsten Fels
CEO
tof@pensam.dk

Vena Energy - Industriens Pension

Vena Energy is the largest renewable energy independent power producer with solar, wind and hydropower assets with over 11 GW in operation, construction or development in the Asia-Pacific region. Vena Energy powers more than 1.7 million households with renewable energy hence saving more than 6.7 million tons of CO2.

Asset classes
• Infrastructure fund and co-investment

Value in US dollars
• Confidential

Geographic location
• Multiple sites across Australia, India, Indonesia, Japan, Philippines, South Korea, Taiwan and Thailand

Green Dimension(s):
• Clean Energy Production

Expected Maturity
• -

Partners
• Global Infrastructure Partners, GIP, one of the leading global infrastructure fund managers

Form of Funding
• Financed with a combination of equity and debt

Lake Turkana (onshore wind) – PensionDenmark

In 2007 a group of international investors came up with the idea of establishing a wind park close to the large desert lake Turkana.

Twelve years later 365 gigantic wind turbines from Vestas are producing power to Kenya’s population of approx. 48 million people.

On average, the turbines deliver around 150,000 megawatt hours per month corresponding to approx. 15 per cent of Kenya’s total electricity production.

The number of power cuts in Kenya has been reduced considerably since the turbines started to run at full speed.

The production of fossil-based energy is more than halved from around 230,000 MW hours in January 2018 to around 100,000 MW hours in January 2019. Consequently, the CO2 emissions have been considerably reduced.

Asset classes
• Unlisted equity

Value in US dollars
• USD 740M (full value of the project)

Geographic location
• Kenya

Green Dimension(s):
• Clean energy production. 365 wind turbines with 0,85 Mw capacity from Vestas

Expected Maturity
• Lake Turkana Wind Project has a 20-year PPA with KPLC. The technology in use will most likely have become obsolete at that time (if not earlier).

Partners
• IFU: The Danish Climate Investment Fund was established in January 2014 in a new collaboration between the Ministry of Foreign Affairs, IFU, pension funds PensionDanmark, PKA, PBU and Dansk Vækstkapital, and Aage V. Jensen Foundation.

Form of Funding
• Blended Finance: Danish Development Finance Institution and Pension Funds (incl. PensionDanmark) investment through Danish Climate Investment Fund: USD 250M.


Contact
Torben Möger Pedersen
CEO
PensionDanmark
tmp@pension.dk


 

Contact

Climate Investment Coalition Secretariat
info@climateinvestmentcoalition.org

The Climate Investment Summit is organised by the Climate Investment Coalition founded by The Danish Government, Institutional 

Investors Group on Climate Change (IIGCC), Insurance & Pension Denmark and World Climate Foundation.