TORONTO, Ontario, May 13 -- Ontario Teachers' Pension Plan issued the following news release on May 12, 2022:
Newly launched Corio Generation (Corio) has entered into a joint venture with leading global investor Ontario Teachers' Pension Plan Board (Ontario Teachers') to fund the development of an initial portfolio of up to 9 GW offshore wind projects.
The portfolio will consist of 14 fixed bottom and floating projects in South Korea, Taiwan, Japan, Ireland and the UK, all of which are currently under development by Corio. Ontario Teachers' will acquire up to half of Corio's stake in these projects, supporting development, construction and operation. Corio and Ontario Teachers' will also explore opportunities to expand the partnership through the creation or acquisition of new projects. In total, the partnership announced today represents an investment of up to US$1 billion in development capital from Ontario Teachers'.
Ontario Teachers' is a major infrastructure investor with C$26.1 billion in infrastructure assets across five continents, including a sizeable portfolio of renewable assets. As a long-term, responsible investor, it is an ideal partner to invest alongside Corio.
Corio Generation, a Green Investment Group portfolio company, is a specialist offshore wind business and home to one of the world's largest offshore wind development portfolios. By combining a unique blend of sector-leading expertise with deep access to institutional capital, Corio applies a long-term partnership approach to the creation and management of projects.
Subject to the satisfaction of customary closing conditions and regulatory approvals, the transaction between Corio and Ontario Teachers' is expected to reach completion in Q3 2022.
Jonathan Cole, CEO of Corio Generation, said: "Corio Generation is committed to accelerating the global deployment of renewable energy by delivering its global portfolio of offshore wind projects. This partnership with Ontario Teachers' represents a highly significant milestone on our journey and demonstrates Corio's capability to bring together a large-scale global portfolio, a team of industrial experts and world-class investment partners. With this collaboration with Ontario Teachers', Corio will generate vast amounts of clean, affordable electricity and support thousands of green jobs, while providing attractive returns on investment."
Chris Ireland, Managing Director, Greenfield Investments and Renewables, Infrastructure and Natural Resources at Ontario Teachers' said: "We are pleased to partner alongside Corio and support the development of a high-quality, global portfolio of offshore wind projects. Offshore wind is poised for significant growth in the years ahead as countries work towards ambitious decarbonization goals. This has been a strategic focus sector for Ontario Teachers' for several years and is a natural fit in our portfolio as we work towards our net-zero targets."
Corio has been established at a time when the demand for green electricity continues to rise - with the total capacity of offshore wind farms expected to reach 228 GW in 2030. This requires greater collaborative action from businesses and governments around the world as well as around US$500 billion of investment in offshore wind by 2030.
Ontario Teachers' has committed to achieving net-zero greenhouse gas emissions across its portfolio by 2050. It has also set ambitious interim reduction targets to reduce portfolio carbon emissions intensity by 45% by 2025 and 67% by 2030, compared to a 2019 baseline.