Cbus Super has acquired a 10 per cent interest in the offshore wind project Star of the South.
Set to be located off the south coast of Gippsland in Victoria with a capacity of up to 2.2 gigawatts, Star of the South is described as the most progressed offshore wind project in the country.
The acquisition follows Cbus’ investment into the flagship fund of Copenhagen Infrastructure Partners (CIP), Copenhagen Infrastructure IV, which is the majority owner of the project.
“Star of the South is a landmark investment for Australian superannuation into the local offshore wind sector,” said Cbus CIO Kristian Fok on the acquisition.
“Cbus is excited to be partnering with CIP, 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 will support, establish and grow the offshore wind industry in Australia, while assisting the Victorian Government’s commitment to a net-zero emissions economy.”
The two firms said that the project seeks to deliver on the strong policy ambition for offshore wind from the Victorian Government, which is aiming for at least 2 gigawatts (GW) of offshore wind capacity by 2032 and up to 9 GW by 2040, while also creating new jobs and investment in the region.
Once completed, Star of the South is expected to be able to power an estimated 1.2 million homes and supply up to 20 per cent of Victoria’s electricity needs.
Under Prime Minister Anthony Albanese, the federal government is also targeting renewable energy to make up at least 80 per cent of Australia’s electricity mix by 2030.
“CIP is pleased to continue to strengthen our long-term partnership with Cbus, a superannuation fund that shares a similar perspective as CIP on the importance of clean energy resources,” commented CIP partner Michael Hannibal.
“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.
“The transaction highlights the significant potential of offshore wind in Australia, with the opportunity for Victoria to be a leader in the significant global growth of offshore wind.”
CIP has about €18 billion ($26.75 billion) of assets under management focusing on investments in energy infrastructure and is a world leader in offshore wind.
Cbus, which has 850,000 members and over $73.5 billion in funds under management, said that Star of the South was its first direct investment in offshore wind locally and formed part of a growing portfolio of renewable investments for the super fund.
