The Canada Pension Plan Investment Board (CPP Investments) has committed to invest $843m in US infrastructure company Tallgrass Energy.
CPP Investments, the investment management arm of C$632.3bn Canada Pension Plan, has signed and closed a definitive agreement to invest in Tallgrass Energy in partnership with manager Blackstone.
Tallgrass Energy engages among others in the development of hydrogen, renewable fuels and decarbonised power assets, operating a network across 12 states in the US.
“With a business strategy that combines traditional energy and decarbonisation solutions, Tallgrass is an attractive investment opportunity because of its dual role in delivering against growing energy needs and increasing decarbonisation opportunities,” Bill Rogers, managing director, global head of sustainable energies at CPP Investments, said.
In 2021, CPP Investments created the Sustainable Energy Group, which currently has net assets of approximately c$34.2bn, including investments in renewables, conventional energy, carbon capture and storage as well as distributed and energy services.
This follows CPP’s investment of $905m into US-based renewable energy and transmission company Pattern Energy Group in the last quarter of 2023 and an additional $300m in Octopus Energy Group in January.