CDPQ acquires 25% of UK';s First Hydro Company from Brookfield
CDPQ, a global investment group, has announced an agreement with Brookfield Asset Management (NYSE: BAM) and its partners to acquire a 25% stake in First Hydro Company, a critical electricity generation and storage facility in the United Kingdom. First Hydro operates two power plants in Wales, offering a capacity of over 2,000 MW, representing 76% of the UK's total pumped hydro storage. This infrastructure is important for the country's increasing grid flexibility and stability needs.
The investment marks CDPQ's first venture into pumped hydro storage, partnering with Engie, which owns the remaining 75%. Emmanuel Jaclot, CDPQ's Executive VP and Head of Infrastructure, highlighted First Hydro's critical role in managing the UK's national electricity system and meeting net zero commitments. The financial close is expected by the end of 2024, subject to customary conditions and approvals.
CDPQ, un gruppo di investimento globale, ha annunciato un accordo con Brookfield Asset Management (NYSE: BAM) e i suoi partner per acquisire una partecipazione del 25% in First Hydro Company, una struttura critica per la generazione e lo stoccaggio di elettricità nel Regno Unito. First Hydro gestisce due centrali elettriche in Galles, offrendo una capacità di oltre 2.000 MW, che rappresenta il 76% del totale dello stoccaggio idroelettrico pompato nel Regno Unito. Questa infrastruttura è fondamentale per le crescenti esigenze di flessibilità e stabilità della rete nel paese.
L'investimento segna la prima incursione di CDPQ nello stoccaggio idroelettrico pompato, in collaborazione con Engie, che possiede il restante 75%. Emmanuel Jaclot, Vice Presidente Esecutivo e Responsabile delle Infrastrutture di CDPQ, ha sottolineato il ruolo fondamentale di First Hydro nella gestione del sistema elettrico nazionale del Regno Unito e nel raggiungimento degli impegni per il net zero. La chiusura finanziaria è prevista entro la fine del 2024, soggetta alle consuete condizioni e approvazioni.
CDPQ, un grupo de inversión global, ha anunciado un acuerdo con Brookfield Asset Management (NYSE: BAM) y sus socios para adquirir una participación del 25% en First Hydro Company, una instalación crítica para la generación y almacenamiento de electricidad en el Reino Unido. First Hydro opera dos plantas de energía en Gales, con una capacidad de más de 2,000 MW, lo que representa el 76% del total del almacenamiento hidroeléctrico por bombeo en el Reino Unido. Esta infraestructura es importante para las crecientes necesidades de flexibilidad y estabilidad de la red en el país.
La inversión marca la primera incursión de CDPQ en el almacenamiento hidroeléctrico por bombeo, asociándose con Engie, que posee el 75% restante. Emmanuel Jaclot, Vicepresidente Ejecutivo y Jefe de Infraestructura de CDPQ, destacó el papel crítico de First Hydro en la gestión del sistema eléctrico nacional del Reino Unido y el cumplimiento de los compromisos de cero emisiones netas. Se espera que el cierre financiero se realice a finales de 2024, sujeto a las condiciones y aprobaciones habituales.
CDPQ는 글로벌 투자 그룹으로써 Brookfield Asset Management (NYSE: BAM) 및 파트너들과 함께 First Hydro Company의 25% 지분을 인수하는 계약을 체결했다고 발표했습니다. First Hydro는 영국에서 전기 생성 및 저장을 위한 중요한 시설로, 웨일스에 두 개의 발전소를 운영하며 2,000 MW 이상의 용량을 제공합니다. 이는 영국 전체 펌프 수력 저장소의 76%에 해당합니다. 이 인프라는 국가의 증가하는 전력망 유연성 및 안정성 요구를 충족하는 데 중요합니다.
이번 투자는 CDPQ의 펌프 수력 저장소 분야에 대한 첫 번째 진출로, 나머지 75%를 소유하고 있는 Engie와 협력하고 있습니다. CDPQ의 인프라 담당 부회장인 에마뉘엘 자클로(Emanuel Jaclot)는 First Hydro가 영국 국가 전력 시스템을 관리하고 탄소 중립 목표를 달성하는 데 중요한 역할을 한다고 강조했습니다. 재정적 마감은 일반적인 조건 및 승인에 따라 2024년 말까지 완료될 것으로 예상됩니다.
CDPQ, un groupe d'investissement mondial, a annoncé un accord avec Brookfield Asset Management (NYSE: BAM) et ses partenaires pour acquérir une participation de 25% dans First Hydro Company, une installation essentielle de génération et de stockage d'électricité au Royaume-Uni. First Hydro exploite deux centrales électriques au Pays de Galles, offrant une capacité de plus de 2 000 MW, représentant 76% du total du stockage hydroélectrique par pompage au Royaume-Uni. Cette infrastructure est importante pour répondre aux besoins croissants en flexibilité et en stabilité du réseau du pays.
Cette investissement marque le premier pas de CDPQ dans le stockage hydroélectrique par pompage, en partenariat avec Engie, qui détient les 75% restants. Emmanuel Jaclot, Vice-président exécutif et responsable des infrastructures chez CDPQ, a souligné le rôle crucial de First Hydro dans la gestion du système électrique national du Royaume-Uni et dans l'engagement envers la neutralité carbone. La clôture financière est attendue d'ici la fin de 2024, sous réserve des conditions et approbations habituelles.
CDPQ, eine globale Investmentgruppe, hat eine Vereinbarung mit Brookfield Asset Management (NYSE: BAM) und deren Partnern angekündigt, um eine 25%-Beteiligung an der First Hydro Company zu erwerben, einer wichtigen Anlage zur Stromerzeugung und -speicherung im Vereinigten Königreich. First Hydro betreibt zwei Kraftwerke in Wales mit einer Kapazität von über 2.000 MW, was 76% des gesamten Pumpspeicherkraftwerks im Vereinigten Königreich ausmacht. Diese Infrastruktur ist entscheidend für die wachsenden Anforderungen an Flexibilität und Stabilität des Stromnetzes im Land.
Die Investition markiert CDPQs ersten Vorstoß im Bereich der Pumpspeichertechnologie in Partnerschaft mit Engie, die die verbleibenden 75% besitzt. Emmanuel Jaclot, Executive Vice President und Leiter der Infrastruktur bei CDPQ, hob die entscheidende Rolle von First Hydro bei der Verwaltung des nationalen Stromsystems des Vereinigten Königreichs und der Erfüllung der Netto-Null-Verpflichtungen hervor. Der finanzielle Abschluss wird bis Ende 2024 erwartet, vorbehaltlich der üblichen Bedingungen und Genehmigungen.
- Acquisition of a 25% stake in a critical national infrastructure
- First Hydro represents 76% of UK's total pumped hydro storage capacity
- Over 2,000 MW capacity, important for grid flexibility and stability
- Partnership with Engie, a world leader in the energy sector
- Supports UK's net zero commitment through renewable electricity and storage
- None.
Insights
This acquisition by CDPQ of a 25% stake in First Hydro Company from Brookfield is a significant move in the UK's energy infrastructure sector. First Hydro's 2,000 MW capacity, representing
For Brookfield (BAM), this deal likely represents a strategic divestment, potentially allowing them to reallocate capital to other growth opportunities or optimize their portfolio. While the financial terms aren't disclosed, such infrastructure assets typically command premium valuations due to their strategic importance and stable cash flows.
Investors should note that this transaction aligns with the global trend towards renewable energy and grid flexibility investments. It may signal Brookfield's shift in focus within the energy sector, possibly towards newer technologies or markets with higher growth potential. The impact on BAM's financials will depend on the sale price and how they utilize the proceeds, which will be important to watch in upcoming earnings reports.
The acquisition of a
First Hydro's facilities in Dinorwig and Ffestiniog are not just power generators; they act as massive batteries, storing excess energy during low demand and releasing it during peak times. This capability is important for maintaining grid stability and managing the variability of renewable energy sources.
For investors, this deal highlights the growing importance of energy storage in renewable-heavy grids. It may spark increased interest in similar assets and technologies. The transaction also underscores the attractiveness of established infrastructure to institutional investors seeking long-term, stable returns in the energy transition era.
- Investment in a critical national infrastructure providing
76% of theUnited Kingdom 's total pumped hydro storage capacity
MONTRÉAL and
Responsible for the management and operation of two power plants at Dinorwig and Ffestiniog in the Snowdonia region of
"First Hydro is playing a critical role in helping the
"We are pleased to have supported First Hydro throughout our ownership period including securing its long-term future through active management of the business. First Hydro will continue to provide considerable renewable power to the
Financial close is expected by end of 2024, subject to customary closing conditions and relevant consents and approval.
ABOUT CDPQ
At CDPQ, we invest constructively to generate sustainable returns over the long term. As a global investment group managing funds for public pension and insurance plans, we work alongside our partners to build enterprises that drive performance and progress. We are active in the major financial markets, private equity, infrastructure, real estate and private debt. As at June 30, 2024, CDPQ's net assets totalled CAD 452 billion. For more information, visit cdpq.com, consult our LinkedIn or Instagram pages, or follow us on X.
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About Brookfield Asset Management
Brookfield Asset Management Ltd. (NYSE: BAM, TSX: BAM) is a leading global alternative asset manager with approximately
Brookfield operates Brookfield Renewable Partners (NYSE: BEP, TSX: BEP), one of the world's largest publicly traded platforms for renewable power and sustainable solutions. Our renewable power portfolio totals over 34,000 megawatts and our development pipeline stands at approximately 200,000 megawatts. Our portfolio of sustainable solutions assets includes our investments in Westinghouse (a leading global nuclear services business) and a utility and independent power producer with operations in the
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CONRAD
Senior Director – International Media Relations
+ 1 514 847-5493
charrington@cdpq.com
JOHN HAMLIN
Manager – Communications
+44 743 605 4717
john.hamlin@brookfield.com
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SOURCE CDPQ
FAQ
What percentage of First Hydro Company did CDPQ acquire from Brookfield (BAM)?
What is the significance of First Hydro Company in the UK energy market?
When is the financial close of CDPQ's acquisition of First Hydro Company expected?
How does First Hydro Company contribute to the UK's net zero commitment?
