Infratil and NZ Super Fund team up to invest in US renewable energy development

Infratil and the New Zealand Superannuation Fund have teamed up to invest in US renewable energy development company Longroad Energy Holdings, which is eyeing developments worth as much as $US100 million.

The Kiwi team, which has previously invested together in Australian retirement village RetireAustralia, New Zealand retirement village Metlifecare and fuel retailer Z Energy, will own Longroad in partnership with the company's management team, Wellington-based Infratil said in a statement. Longroad is focused on the development of utility-scale wind and solar generation in North America and over time it will provide an option for further investment in stable, low-risk operating assets, the company said.

Infratil has been scouting for new investments, having accumulated $1 billion of capital after selling its Z Energy, Lumo and iSite holdings in the 2016 financial year. The Longroad investment gives the Kiwi team exposure to one of the largest and fastest growing renewable markets in the world with an experienced US management team previously involved in First Wind, which Infratil said was one of the most successful independent renewable energy development teams in the US over the past decade.

"We sought an experienced and proven management team with the ability to operate a large-scale development platform," Infratil chief executive Marko Bogoievski  said. "Following an extensive review of potential opportunities, Longroad emerged as the best candidate to realise our ambitions in the market."

The management team at Longroad has operated across different states, regulatory environments and transmission networks in the US, with a track record of developing, financing, constructing and operating utility-scale renewable generating facilities, having completed development and financing for projects with a total capacity of over 4 gigawatts, he said.

The Longroad investment will be managed by Infratil's manager, HRL Morrison & Co, on behalf of Infratil and the Super Fund.

Infratil shares last traded at $3.25 and have slid 0.8% this year. The stock is rated a 'buy' according to the average recommendation of five analysts polled by Reuters.

(BusinessDesk)

Click the hamburger symbol top right of our homepage to access the Rich List 2016 and other sections.