The Caisse de dépôt et placement du Québec is acquiring a 25 per cent stake in U.K.-based First Hydro Co. alongside Brookfield Asset Management and its renewables affiliate.

While the financial details of the transaction weren’t disclosed, the deal is expected to close by the end of the year, according to a press release. Global energy firm Engie will remain as the majority shareholder with a 75 per cent ownership stake.

In the release, Emmanuel Jaclot, executive vice-president and head of infrastructure at the Caisse, said the deal represents the first foray into pumped hydro storage by the investment organization. “First Hydro is playing a critical role in helping the U.K. manage its national electricity system and meet its net-zero commitment by providing renewable electricity and storage capabilities.”

Read: Caisse invests $35M in energy transition fund, AIMCo buys Australian rural portfolio

In other news, the Caisse is launching an investment program to build a portfolio of forestland assets in the Pacific Northwest region of the U.S. The investment will be overseen by Capital investment manager Chinook Forest Partners LP.

As part of the investment initiative, the Caisse will buy a minority stake in its partner. The financial details of the transaction weren’t disclosed. In the release, Jaclot said the capital deployed with this program is intended for the preservation and sustainable management of the forest area in the region.

“By investing in forestland, we are not only protecting valuable natural assets but also contributing to the transition towards a greener economy.”

Read: Caisse reports more than $53 billion in low-carbon assets

The Caisse is also investing in a fund that will support energy and transition assets in emerging markets. The fund secured an initial closing total of US$2.4 billion, roughly halfway to its overall goal of raising $5 billion.

The fund will invest in projects located in South and Central America, South and Southeast Asia, the Middle East and Eastern Europe. Marc-André Blanchard, executive vice-president, head of CDPQ Global and global head of sustainability at the Caisse, said the energy transition market needs about $6.5 trillion invested over the next 15 years.

“By investing in Brookfield’s Catalytic Transition Fund, we are supporting innovative approaches to mobilize capital for climate solutions in emerging markets, where investments are critical to tackle the global environmental challenge.”

Read: Caisse, OMERS commit US$400M to emerging market energy transition debt