Anbaric, a developer of clean energy transmission and microgrid projects, and Ontario Teachers' Pension Plan have announced a partnership to create a new development company, Anbaric Development Partners.
The partnership will develop clean energy infrastructure projects in North America, accelerating the revitalization of aging transmission networks. The existing Anbaric management team will lead the new company. Through Anbaric, Ontario Teachers' is committed to funding development costs which are projected to produce CAD2 billion (US$1.49 billion) in fully constructed assets.
Edward N. Krapels, Founder and CEO of Anbaric, said:
"Today's announcement is a critical step forward in linking an institutional investor with an energy infrastructure company at a key inflection point for the electric power grid. Ontario Teachers' investment in Anbaric creates an attractive launching pad for generating innovative energy jobs and boosting local economies while replacing our deteriorating and outdated fossil fuel-oriented grid with new and sustainable energy alternatives. This includes sophisticated high-voltage direct current (HVDC) transmission technology and microgrid projects that will bring renewables online with greater efficiency."
Andrew Claerhout, Senior Managing Director for Infrastructure and Natural Resources at Ontario Teachers', said:
"We are seeing so much innovation right now in the clean energy sector. This investment fits our goal of finding new ways to diversify through opportunities that have significant, long-term revenue stream potential. With our thoughtful and reputable partners at Anbaric, we will strategically invest earlier in the asset lifecycle seeking attractive returns for our members with the added benefit of participating in projects that support the transition to a low carbon economy."
While Anbaric has developed and completed several projects in the Northeast teaming up with a range of investment partners to deliver power more efficiently, this announcement marks the largest financial commitment by an investor in the company's 15-year history. Anbaric has been a prime mover behind a number of independent electric transmission projects, including:
Anbaric CFO Timothy L. Vaill, said:
"We are excited to have formed a partnership with world-class pension plan Ontario Teachers' that is experienced in making direct infrastructure investments. OTPP has achieved strong long-term returns by making these direct investments which we hope to emulate going forward."