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KKR and Energy Capital Partners have announced a $50 billion strategic partnership to support AI growth through investments in data centers and power generation.
The partnership aims to address the urgent need for funding in data center, power, and grid infrastructure both in the U.S. and globally.
Scaling AI and cloud infrastructure in the U.S. is projected to cost at least $1 trillion by 2030.
Demand for data centers in the U.S. is expected to nearly triple by 2030, requiring significant investments to meet this need.
A planned data center campus typically demands over 1 gigawatt of power and may exceed $15 billion in investment.
Bain Capital acquires majority share in Aquila Group’s data center business AQ Compute.
Together, the partners aim to build a leading European data center platform.
Bain Capital's 80% stake in AQ Compute is part of a significant partnership in the data center sector.
The alliance targets a multi-billion Euro investment volume to develop sustainable data centers for hyperscale and AI customers.
AQ Compute, founded in 2020, offers modular and AI-ready data center services powered by clean energy.
The first sustainable data center launched near Oslo in 2024, with additional projects planned in Barcelona and Milan.
Hassana Investment Company and EIG have signed a memorandum of understanding to collaborate on infrastructure and energy transition projects in the Middle East.
EIG has established a targeted US$1 billion dedicated regional fund, with Hassana considering an allocation of up to US$250 million as an anchor investor.
This partnership aims to support the growth of infrastructure investments and facilitate the energy transition in Saudi Arabia and the broader region.
The MoU underscores a joint commitment to expand local and regional investment portfolios and support Saudi Arabia's Vision 2030 goals.
Verdane Idun II has closed at its €700 million hard cap, more than doubling the size of its €300 million predecessor fund Idun I.
Idun II will invest in decarbonising the economy, specifically in the areas of energy transition and resource efficiency.
Verdane is a pioneering sustainability investor, backing 42 sustainable businesses since 2003.
This is the firm’s third successful final fund close in 12 months.
The fund invests between €20 and €100 million into sustainable businesses while passing strict sustainability criteria.
Investments from Idun II aim for a minimum carbon avoidance target of 5,000 tonnes of CO2 avoided per €1 million invested.
LanzaTech and Eramet announced plans for an integrated Carbon Capture, Utilization and Storage project in Norway.
The facility will be located at Herøya Industrial Park in Porsgrunn and is set to produce ethanol, beginning operations in 2028.
Eramet will supply furnace gas from the Porsgrunn Manganese Alloys smelter as feedstock but will not finance the project.
LanzaTech's CCU and CCS technologies will create a pioneering facility with advanced carbon abatement metrics.
The new plant will complement six existing commercial scale plants using LanzaTech’s technology and will be fully managed by LanzaTech.
The Front-end Engineering Design phase has been completed in collaboration with Fluor Corporation.
Brookfield Asset Management will have the right of first refusal for financing and owning the project, with a Final Investment Decision anticipated in the next six months.
The facility will have a maximum production capacity of 24 kilotons per annum of fuel-grade ethanol, aimed at various markets including sustainable aviation fuel.
LanzaTech's technology converts carbon-rich gases into sustainable raw materials, contributing to a circular carbon economy.
Ørsted has signed a partnership agreement with Brookfield to acquire a 12.45 percent minority stake in four operational UK offshore wind farms.
The wind farms involved are Hornsea 1, Hornsea 2, Walney Extension, and Burbo Bank Extension, with a total capacity of approximately 3.5 GW.
The transaction is valued at GBP 1.745 billion, approximately DKK 15.7 billion, and is expected to close by the end of 2024, pending regulatory approvals.
This move is part of Ørsted's farm-down program, contributing to significant reinvestment in new assets.
Ørsted retains a 37.55% ownership interest in the wind farms and will maintain control and governance similar to before the transaction.
Ørsted will also oversee the operations and maintenance of the wind farms according to existing service agreements.
Brookfield's investment signifies its entry into the UK offshore wind sector, which complements solar PV and onshore wind technologies.
The agreement includes a call option, allowing Ørsted the opportunity to repurchase the assets from Brookfield between two and seven years after the transaction closes.
Green Bridge Energy, Archetype Energy and Climate Commodities announced a $500 million partnership for renewable energy projects.
The agreement aims to address the investment gap for middle-market renewable energy initiatives.
This partnership will enhance the deployment of decentralized renewable energy infrastructure.
The initiative responds to the rising demand from corporations and municipalities for clean energy solutions.
Birch Creek Energy has closed a $150 million credit facility with KKR to support the development of over 4GW of solar projects.
The financing extends and increases Birch Creek's previous $100 million facility and will finance development expenses and equipment for solar farms.
Birch Creek, founded in 2019, focuses on utility-scale solar and storage in markets like PJM, MISO, and ERCOT.
The company owns 160MW of operating projects and has an additional 187MW under construction, bringing the total to 347MW.
Equinor has signed an agreement with EQT Corporation to acquire additional non-operated interest in the Northern Marcellus formation in the US.
Equinor will pay $1.25 billion to EQT for the transaction.
The agreement includes the acquisition of 100% of EQT’s remaining working interest in Northern Marcellus gas units primarily operated by Expand Energy.
The acquisition covers the same acreage included in the swap agreement with EQT announced earlier this year.
With this transaction, Equinor will increase its average working interest in the Northern Marcellus asset from 25.7% to 40.7%.
The transaction adds approximately 80,000 barrels of oil equivalent per day to Equinor’s US production in the near-term.
Rio Tinto has transitioned to renewable diesel for all heavy mining equipment at its Kennecott copper mine in Utah.
The mine now operates with a fleet of 97 haul trucks and heavy machinery fueled by renewable diesel sourced in the United States.
This switch is expected to reduce Scope 1 emissions by 450,000 tonnes, comparable to taking 107,000 cars off the road annually.
Renewable diesel will also lower PM2.5 emissions by 40%, equivalent to about 2.3 billion miles of light vehicle travel each year.
The Kennecott mine has achieved one of the lowest carbon footprints among copper producers in the U.S.
This achievement follows several initiatives including the closure of a coal-fired power plant and the installation of a solar farm.
The overall carbon footprint of the operation has been reduced by more than 80% from 2018 levels.
Rama Variankaval is Global Head of Corporate Advisory & Sustainable Solutions at J.P. Morgan. This group combines the capabilities of Corporate Finance Advisory, Center for Carbon Transition, Sustainable Solutions, and Infrastructure Finance Advisory.
We talk energy transition, carbon reduction, and the impact of AI on energy.
This episode is audio-only and you can find it on Spotify or Apple Podcasts as well.
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DISCLAIMER: None of this is financial advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. Please be careful and do your own research.