Australian alternative asset manager HMC Capital has marked the first investment for its energy transition platform by laying out up to A$50m (€31m) to buy a stake in battery energy storage systems (BESS) developer Stor-Energy.
HMC Capital Transition will make an initial investment plus additional funding over a three-year period to secure a majority interest in the business with Stor-Energy’s senior management team, who will continue to lead the business, retaining a minority interest in the venture.
The investment will enable Stor-Energy to progress its 1.4GW development portfolio which is expected to cost about A$2bn to develop.
Stor-Energy’s development portfolio comprises six utility-scale BESS opportunities which are located close to existing grid infrastructure in four mainland National Electricity Market states.
Co-founder, CEO and managing director of Stor-Energy, Gerard Dover, said the partnership would help fulfill Stor-Energy’s potential.
HMC managing director and CEO, David Di Pilla, said: “Our investment in Stor-Energy represents an exciting step in the establishment of HMC Capital’s Energy Transition platform.”
HMC Capital transition strategy aims to assemble a 15GW development portfolio across the energy value chain, including wind, solar, battery, bio-fuels and emerging technologies.
HMC head of energy transition, Angela Karl, said: “HMC has already identified other complementary bolt-on opportunities which are currently under review.”
HMC said the company remained on track to commence fundraising in the second half of this year for its inaugural energy transition platform which is seeking to raise up to $2bn.
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