Danish Fund Sets Sights on €12bn for Renewable Energy Projects, Spanning Taiwan to the Emerald Isle

Copenhagen Infrastructure Partners Aims to Raise €12bn for Renewable Energy Investments, Setting New Records in the Transition from Fossil Fuels

Copenhagen Infrastructure Partners (CIP) is seeking to raise €12bn in funds dedicated to investing in renewable energy, making it one of the largest ever funds of its kind. The Danish fund manager has already reached its first close of €5.6bn and expects to double that amount within the next year, according to managing partner Jakob Baruël Poulsen. This significant boost in capital is crucial for the renewable power sector, which requires substantial investment to meet climate goals, especially as rising interest rates pose a threat to returns.

CIP, in partnership with Statkraft, is currently developing a wind project in the Irish Sea as part of the ‘North Irish Sea Array’. Mr. Baruël Poulsen stated, “Every time we create a new fund, it doubles in size. The main purpose of the fund is to generate good returns, with the added benefit of making a material contribution to tackling the climate crisis, one of the greatest challenges humanity has ever faced.”

Governments worldwide are increasingly committed to reducing their reliance on hydrocarbons, resulting in a surge in investments in renewable energy. CIP believes that the case for investing in renewables is improving as green energy becomes more cost competitive with fossil fuels, governments provide greater support for development, and power prices rise. Mr. Baruël Poulsen, with 25 years of experience in the industry, stated, “The renewable energy market has never been more attractive than it is now.”

This latest fund is the fifth raised by CIP since its establishment in 2012. When fully subscribed, it will be significantly larger than its predecessor, which began with €1.5bn and grew to €7bn during the fundraising process. CIP’s flagship funds exclusively invest in renewable power assets developed by the firm itself, setting it apart from other large green investment funds that acquire already constructed projects and encompass a broader range of technologies, including nuclear power.

Mr. Baruël Poulsen, along with three partners, founded CIP after playing a key role in developing the offshore wind business at what is now Orsted. The firm utilizes the business model they refined at the Danish utility. CIP’s investments include the first commercial-scale wind farm off the coast of the US, one of Spain’s largest wind farms, and a growing portfolio of offshore wind projects spanning from Taiwan and California to the Irish Sea.

The fund aims to achieve annual returns of 10% to 12%, according to Mr. Baruël Poulsen. This positive outlook for investment comes as major oil companies such as Shell and BP scale back their aggressive forays into renewable power, particularly offshore wind, citing low returns. Bloomberg. Additional reporting Irish Examiner.