I Squared Capital is ramping up its energy transition strategy with the acquisition of Italian renewables projects developer Absolute Energy.

The $37bn (€35.2bn) global infrastructure investment manager has agreed to buy up to a 95% interest in Absolute Energy and plans to invest up to €400m to help develop a 3GW pipeline of solar photovoltaic, wind and storage projects.

I Squared Capital said Absolute Energy will also target “adjacent technologies that address the challenges of intermittent power generation”, such as battery storage, grid stability and clean fuels.

Gautam Bhandari, global CIO and managing partner at I Squared Capital, said: “I Squared is excited to contribute our capital and our expertise to the continued growth of Absolute Energy, whose robust project pipeline will be critical to the energy transition in Italy.

“This investment uses our platform building expertise to convert a large pipeline of renewables projects into a modern, integrated energy utility that champions energy transition in Europe.”

Alberto Pisanti, CEO of Absolute Energy, said the capital infusion from I Squared provides growth capacity for “us to accelerate the building of the firm’s renewable energy generation pipeline.

Pisanti added: “It will also enable us to expand in other areas such as storage, grid stability and clean fuels and to actively support Italy’s historic commitments toward the energy transition.”

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