Cbus Super has bought a 10% stake in an Australian offshore wind project, Star of the South, which will cost up to A$10bn (€6.7bn) on completion.

The A$73.5bn Australian superannuation fund acquired the interest from Copenhagen Infrastructure IV (CI IV), a fund managed by Copenhagen Infrastructure Partners (CIP).

Cbus Super is an existing investor in CI IV, the majority owner of Star of the South. 

Kristian Fok, CIO of Cbus Super, said: “Star of the South is a landmark investment for Australian superannuation into the local offshore-wind sector.”

He said Cbus was partnering one of the world’s largest and most successful developers of offshore wind, while helping to pioneer the offshore wind industry in Australia.

Star of the South would support, establish and grow the offshore wind industry in Australia, while assisting the Victorian Government’s commitment to a net-zero-emissions economy, Fok added.

Michael Hannibal, partner at CIP, said the deal strengthened the firm’s long-term partnership with Cbus, “a superannuation fund that shared a similar perspective as CIP on the importance of clean energy resources”. 

He said: “Combining CIP’s industrial background and international experience within offshore wind with Cbus’ local experience, our partnership will enable the provision of renewable power to Victorian homes and businesses and contribute to reaching Victoria’s decarbonisation targets.”

Star of the South, costing between A$8bn and A$10bn is Australia’s most progressed offshore wind project, to be located off the south coast of Gippsland in Victoria, with a capacity of up to 2.2 GW. 

The Victorian Government is targeting at least 2 GW of offshore wind capacity by 2032 and up to 9 GW by 2040, establishing an entirely new clean energy sector in Victoria. 

CIP bought into the wind project in 2017 and has been providing the financial backing to the development of the project, founded by Australian businessmen Terry Kallis, Andy Evans and Peter Sgardelis.