CPP Investments and Power2X to jointly invest in green molecules market

The Canada Pension Plan Investment Board (CPP Investments) and hydrogen project developer Power2X have entered a long-term investment collaboration focused at enhancing Power2X’s leadership role in the worldwide sustainable energy transition.

In order to fund projects involving green molecules and advance Power2X as a development platform, the collaboration intends to make an initial investment of €130 million. With a focus on green hydrogen and other clean molecules like green methanol and ammonia, the investment helps Power2X achieve its goal of being a long-term developer, owner, and operator of next-generation energy assets.

In partnership with international industrial firms, Power2X creates large-scale new energy assets and infrastructure with an emphasis on decarbonizing industrial value chains and heavy transportation. The company has a diversified portfolio of projects with an emphasis on meeting the demand for clean hydrogen, ammonia, and methanol. According to the agreement, CPP Investments will buy the majority of Power2X.

The use of “green molecules” refers to the decarbonization of non-power, difficult-to-abate industrial processes using green hydrogen and its derivatives, such as green ammonia and green methanol. Notably, these eco-friendly compounds can serve as direct substitutes for fuels used in transportation and heating.

By 2050, CPP Investments intends for all of the emissions from its operations and portfolio to be zero. The organization’s main goal is to facilitate the transition of the entire economy to a low-carbon future.

The CPP Investments Sustainable Energies segment invests in conventional and renewable energy, carbon capture, utilities, power generation, emerging and disruptive prospects, and holds a diversified portfolio predominantly made up of long-term physical assets. The Sustainable Energies group portfolio had net assets at C$32 billion as of March 31, 2023.

Power2X will considerably improve its potential to lead the transition to green molecules and support initiatives to address emissions from the hardest-to-abate businesses in the world by joining the Sustainable Energies group’s portfolio.