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Danish pension funds team up for 100m euro renewables allocation

Investors also revealed in Fortis clean energy infrastructure fund.

Three Danish pension funds have reportedly teamed up to put DKK750m (€101m) into renewable energy projects. The funds, PensionDanmark, a €10bn cross-sector pension plan, and PBU, the €3.5bn Danish pension fund for early childhood teachers, have agreed a co-investment in a fund run by a third pension plan, AP Pension’s Green Power Partners fund, according to ipe.com. Green Power Partners was set up earlier this year by AP Pension in partnership with the Proark group, a Danish private investment firm, via its Proark Energy subsidiary. The fund invests in renewable, carbon-neutral energy projects, primarily focusing on sun and wind energy in Europe. AP Pension is a private occupational pension provider with €4.8bn in assets.
PensionDanmark said it expected the new commitments to the fund to be fed in over the next eighteen months to two years. Green Power Partners has already made initial investments of DKK135m in three solar cell parks in Spain, near Barcelona underpinned by Spanish state guarantees that the electricity production from the parks can be sold for the next 30 years at a fixed inflation-adjusted price.Separately, Dutch pension fund manager giant PGGM, has emerged as a key backer of a clean energy infrastructure fund run by Fortis Investments.
Fortis said the fund had received “a significant cornerstone commitment” from PGGM as part of €158m in commitments from institutional investors. Other investors included Pensioenfonds Grafische Bedrijven, the Dutch graphic designers pension fund, as well as Japanese and Belgian institutions. BNP Paribas Fortis (formerly Fortis Bank) was the fund’s founding investor, with an investment of €50m.
The fund is still open and raising capital and aiming for a target size of €450m. It was launched in September 2008 and focuses on on-shore wind, small-scale hydro, solar photovoltaic and biomass technologies. It says it has a “significant pipeline” of investments in France, Italy, Spain and the UK.