The Investment Management Corporation of Ontario (IMCO) is acquiring UK company Green Frog Power to establish a global battery-storage platform.
IMCO, which manages C$73.3bn (β¬49.5bn) of institutional public-sector capital in Ontario, said it will buy 100% of Green Frog and will invest C$500m over several years to transform it into an owner and operator of utility-scale batteries.
Green Frog, founded in 2009, develops operates UK flexible energy-generation projects, which can provide more stability to intermittent renewable-energy sources.
βUtility scale batteries play a critical role in greening electricity by providing grid operators with frequency stability solutions, which enable further renewable penetration growth,β said Tim Formuziewich, managing director of global infrastructure at IMCO.
βThe 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 $1trn utility-scale battery sector.β
Jeremy Taylor, founding director at Green Frog, said: βOver the past 12 years, we have built Green Frog into a national leader in flexible generation. We are excited to be working together to build a best-in-class scalable battery storage platform.
βIMCOβs acquisition enables us to continue to offer the UK market enhanced grid stability services.β
It is the first time IMCO has fully acquired a company. The organisation, which manages the assets of Canadian investors, including Ontario Pension Board and the Workplace Safety and Insurance Board, described it as a βmarquee addition to IMCOβs infrastructure portfolioβ.
Bert Clark, president and CEO of IMCO, said: βIMCO is actively seeking new and innovative ways to participate in the global transition towards a low-carbon future, while accessing compelling returns for our clients.
βThis acquisition is an excellent example of this strategy in action and is tightly aligned with our ESG and sustainable investing objectives.β
