The Canada Pension Plan Investment Board is entering a joint venture focused on providing services to support Brazil’s transition away from fossil fuel reliance.
Alongside Votorantim Group, the CPPIB is launching Floen, which will support the scaling of innovative technologies and business models with the potential to accelerate the energy transition, according to a press release. The new company’s ownership will be evenly divided between its two backers.
In the release, the investment organization said Floen would provide energy storage, green hydrogen, alternative fuel, mobility, energy efficiency and carbon management services. Raphaella Gomes, who was previously the head of transition investments at a major Brazilian energy producer, has been named as its chief executive officer.
Read: PSP, CPPIB backing offshore wind companies
“We believe there is significant opportunity to deliver strong long-term risk-adjusted returns for the CPP fund through Floen,” said Ricardo Szlejf, managing director and head of Latin America at the CPPIB, in the release.
In other news, the French government has selected a subsidiary of a joint venture backed by the CPPIB to develop wind farms off the coast of Normandy.
Eoliennes en Mer Manche Normandie, a new company co-owned by Électricité de France and Maple Power Ltd., will design, build, operate and decommission an offshore wind farm 32 kilometres off the coast of Normandy. Maple Power, which is a joint venture between the CPPIB and Enbridge Ltd., specializes in the management of offshore energy generation.
Construction is expected to be completed by 2030. Once commissioned, it’s expected to generate a gigawatt of power each year, enough electricity to provide for the needs of 1.5 million people.