CPP investment board forms new Sustainable Energy Group

The Sustainable Energy Group (SEG), a new investment group that combines expertise in renewables, conventional energy and new technology and service solutions, has been created by the Canadian Pension Plan Investment Board.

Through the combination of the Energy & Resources (E&R) and Power & Renewables (P&R) groups, SEG will have approximately $18 billion in assets, making it highly competitive and flexible in the large and dynamic global energy sector.

According to the Bloomberg New Energy Outlook 2020 report, about US$15.1 trillion is expected to be invested in new power capacity alone by 2050. SEG is well positioned to pursue a variety of opportunities in this, and the broader sustainable energy market, having combined expertise in conventional energy, renewable energy, carbon capture as well as emerging and disruptive opportunities through its innovation and technology and services team.

“The energy sector is one of the most important enablers of the global economy and is composed of a wide spectrum of suppliers from conventional to renewable,” Deborah Orida, senior managing director and head of real assets, CPP Investments, said. “Along our unique investment horizon, we see a dramatic opportunity to invest in, and support, the evolution and innovation occurring across the sector. CPP Investments is exceptionally well placed to be among the winners, in part through our partnership model alongside companies willing to grasp the future and forge ahead.”

Bruce Hogg will lead the SEG as managing director, head of Sustainable Energy Group. He was most recently managing director, head of Power & Renewables and has more than two decades of real assets investing experience. He joined CPP Investments 14 years ago, and during that time grew the infrastructure team’s global business. More recently, he led the team that built a P&R portfolio of more than $9 billion in three years.

“The creation of the Sustainable Energy Group with significant, flexible capital positions us extremely well to pursue the best market opportunities across the entire energy spectrum,” Hogg said. “This, coupled with a deep, highly experienced team, will allow SEG to generate significant long-term value for the Fund.”

Avik Dey, managing director, head of Energy & Resources, will act as senior adviser to CPP Investments, supporting SEG and the office of the CEO over the next six months, following which he has decided to return to his entrepreneurial roots.

“On behalf of CPP Investments, I’d like to acknowledge Avik for his leadership of the Energy & Resources team,” Orida said. “His vision played a key role in the creation of the Sustainable Energy Group and we thank him for his significant contributions to the organization over the past seven years.”