Renewable giant Quinbrook readies for UK expansion after raising $1.2bn

Quinbrook’s exposure to the UK energy transition is set to grow after raising $1.2bn, despite signs the Sunak government is watering down its commitment to net-zero emissions.

Quinbrook, the renewable energy infrastructure investment company founded by two Australians, is targeting UK expansion after it concluded funding, raising more than $1.2bn.

The injection of capital, beyond what Quinbrook had initially intended to raise, will stoke the coffers of the renewable infrastructure investor and position it to capitalise on the global movement towards renewable energy in a bid to reach net-zero emissions by 2050.

Quinbrook – which recently completed the acquisition of the ambitious Sun Cable project – is one of the world’s largest renewable energy investors – but it will deepen its footprint in the UK despite signals that the country may be walking back on its commitment to the energy transition

Quinbrook said the fundraising for its UK-focused Quinbrook Renewables Impact Fund has attracted £620m of investor commitments, 20 per cent more than it had initially targeted.

The QRIF is Quinbrook’s third fund, with this one designed specifically to give investors exposure to the UK energy transition. It was marketed primarily to UK investors, and Rory Quinlan, managing partner and co-founder of Quinbrook, said the fact it was oversubscribed underscores the interest of investors.

“The differentiated strategy and the sheer scale of impact the Fund seeks to have in the UK market has proven highly attractive to QRIF’s institutional investors,” said Mr Quinlan.

“Select UK power infrastructure assets can have valuable diversifier benefits to portfolio investments which are strongly correlated to GDP.”

The funds will supplement the acquisitions of the QRIF, which has already invested in the Cleve Hill solar and battery storage project – which is one of the UK’s largest solar and battery developments and Habitat Energy – a platform that boosts the financial returns of battery projects.

Quinbrook’s deeper foray into the UK comes despite British Prime Minister Rishi Sunak last month abandoning two of Boris Johnson’s key environmental promises and scaling back on the country’s net-zero ambitions.

Mr Sunak said the Conservative Party walk back on a push to ban the sale of new diesel and petrol cars five years to 2035, aligning the UK with the European Union position.

One of the most contentious and hated net-zero policies, making people pay tens of thousands of dollars for new electric heat pumps in place of oil and gas boilers, has also been pushed down the road.

The switch to heat pumps will only be enforced when buying a new boiler from 2035 and those wanting to upgrade earlier can benefit from a government grant.

Still, Quinbrook said investors remain attracted to the UK – said Mark Burrows, Quinbrook’s head of Europe, capital formation, and investor engagement.

“Strong macro tailwinds are supporting QRIF’s investment strategy, with the confluence of societal will, political imperatives which are cross party in the UK and fundamental economics driving decarbonisation of power,” said Mr Burrows.

Quinbrook’s UK strategy comes as it embarks on one of Australia’s most notable renewable energy projects. In September, Quinbrook and Mr Cannon-Brookes completed the joint acquisition of Sun Cable.

Sun Cable will develop Australia’s largest solar farm near Tennant Creek and then ship the clean energy to Darwin via a 6.4GW, 800km overhead transmission line. The energy will be supplemented with 36-42 gigawatt hours of battery storage.

Mr Cannon-Brookes aims to then transport clean energy to Singapore via a near 5,000KM undersea cable, which some experts said is pushing the boundaries of technological feasibility.

Quinbrook will not participate in developing the undersea cable that would be five times bigger than the longest submarine link yet proposed – the 767km Viking link between the UK and Denmark.

Still, Mr Cannon-Brookes has pledged to deliver the green energy behemoth, which if realised would make Australia a renewable energy export powerhouse.

Quinbrook was established in July 2015 by Mr Quinlan and David Scaysbrook.

Originally published as Renewable giant Quinbrook readies for UK expansion after raising $1.2bn