An energy transition fund targeting £500 million has gained £40 million from a UK local authority pension scheme.
Cornwall Pension Fund has committed to investing the sum in the Octopus Energy Transition Fund (OETF), which Octopus Energy Generation launched last year to invest in fast-growing sectors decarbonising the economy, including heating, storage and transport.
Among stocks the fund holds is Cornwall-based heat pump business, Kensa Group, which aims to scale the roll-out of heat pumps in Britain.
Cornwall Pension Fund has over £2.4 billion of assets under management and intends to have a net-zero investment portfolio.
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Octopus Energy Generation is one of Europe’s largest investors in green energy, with a £7 billion portfolio of renewables and energy transition projects globally.
Alex Brierley, co-head of Octopus Energy Generation’s fund management business, said: “It’s brilliant to be working with Cornwall Pension Fund to turbocharge the energy transition and invest in a sustainable future for generations to come. Through the Octopus Energy Transition Fund, we’re backing massively scalable sectors decarbonising our economy that will drive down bills for customers, boost local economies, and help us get to net zero quicker than ever before.”
Matthew Chapman, investment manager at the Cornwall Pension Fund, said: “We are delighted to be working with Octopus Energy Generation through this innovative fund. The Cornwall Pension Fund has ambitious climate objectives, and we want to drive real change through how we invest.
“Through this partnership with Octopus Energy, we can make widespread positive impact, actively investing in and benefiting from the transition to a low carbon economy.”
