(Bloomberg) -- Investment Management Corp. of Ontario, a money manager for pension funds in the Canadian province, bought U.K.-based power generator Green Frog Power Ltd. to seize on the growing market for renewable energy.
The pension fund said it will invest up to C$500 million ($400 million) to buy the business and execute on its pipeline of battery projects. Green Frog produces power stations that utilize batteries, which are key to the production of solar- and wind-based electricity.
“Utility scale batteries are in some sense the missing link in transitioning the energy distribution and generation markets, because the sun doesn't always shine and the wind doesn't always blow when you need power,” IMCO CEO Bert Clark said in an interview. “The only way to level that out is to introduce batteries.”
The pension manager expects the business to grow across various geographies, depending on opportunities, according to its global head of infrastructure, Tim Formuziewich.
“Green Frog gives us access to a flexible generation platform and a substantial development pipeline in the early stages of a trillion-dollar sector,” Formuziewich said.
IMCO was created less than five years ago to consolidate several public-sector funds under one manager. It's the first time it has acquired a company outright.
The pension manager for government workers in the Canadian province manages C$73.3 billion in assets. It posted an overall gain of 5.4% for 2020.
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