CIP reaches EUR 3B close on hydrogen fund

The hard cap of EUR 3 billion has been reached by Copenhagen Infrastructure Partners (CIP) for its new fund, CI Energy Transition Fund I (CI ETF I).

CI ETF I enables institutional investors to take part in the decarbonization of the so-called hard-to-abate industries and support the further integration of renewable power generation in the energy mix through grid balancing by investing in next generation renewable energy infrastructure, including industrial scale Power-to-X (PtX) projects. By utilizing green fuels, feedstock, and fertilizers free of carbon dioxide, the fund hopes to aid in the decarbonization of sectors including agricultural, aviation, shipping, chemical manufacture, and steel production. The fund will largely concentrate on greenfield projects in the OECD.

With about a 50/50 mix between current and new CIP fund investors, CI ETF I received commitments from investors in the Nordics (25% of commitments), Europe (45%), Asia-Pacific (20%), and North America ( 10% of commitments). About 65 institutional investors make up the fund’s investor base, the majority of which are pension funds, life insurance companies, sovereign wealth funds, asset managers, and family offices.

CI ETF I am off to a good start with FID taken on one investment and ownership on a number of appealing industrial scale development stage PtX projects with a variety of exposure to production technologies and offtake markets. Based on GW scale renewable energy output and electrolysis capability, the projects, which include those in Western Europe (Denmark, Norway, Spain, Portugal), South America (Chile), and Australia, are planned to produce green hydrogen, green ammonia, and sustainable aviation fuel.

Once in operation, the present portfolio of CI ETF I is anticipated to deliver more than 4 million tonnes of green fuel yearly while reducing CO2 emissions by more than 7.5 million tonnes (or around 1.6 million automobiles).