The Investment Management Corp. of Ontario is acquiring a British power provider that specializes in the use of low-carbon technologies.

Green Frog Power Ltd., which builds and operates power stations throughout the U.K., is working toward a long-term goal of bringing hydrogen gas into the country’s existing gas distribution network.

The acquisition comes as GFP prepares to launch a new project to use a network of 280 megawatt batteries to store power from renewable sources. According to the IMCO, it will invest up to $500 million in order to scale up the project.

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In a press release, Tim Formuziewich, managing director of global infrastructure at the IMCO, said the acquisition provides the organization with the opportunity to become involved in the battery storage sector during a critical phase. “The acquisition of Green Frog gives us access to a leading flexible generation platform and a substantial development pipeline in what we believe is the early stages of a trillion-dollar utility scale battery sector.”

Bert Clark, president and chief executive officer of the IMCO, added that the acquisition offered a compelling opportunity for the organization. “This acquisition is an excellent example of this strategy in action and is tightly aligned with our [environmental, social and governance] and sustainable investing objectives.”

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In other investment news, the Public Sector Pension Investments Board is investing in a Canadian investment fund designed to support the disruption of traditional industries through the use of emerging technologies.

The PSP participated in a $200 million funding round for Yaletown Partners Inc.’s Innovation Growth Fund II. The fund will finance the modernization of traditional industries through the use of machine learning, artificial intelligence, software-defined systems and the industrial Internet of things.

In a press release, Adam Smalley, managing director of complementary portfolio at the PSP, said the investment fund is aligned with the pension’s sustainability and ESG objectives. “Its focus on digital transformation will benefit many industries through operational efficiencies, driving both financial returns and positive impact on climate change.”

Read: CPPIB investing in Canadian AI, PSP in gene-editing software company