AIMCo, GIC, Manulife and Ontario Teachers’ Fund Green Hydrogen Project to Help Western US Utilities Meet Sustainable Energy Goals
HOUSTON – Haddington Ventures, LLC formed Haddington ESP I, LP to provide equity capital for the construction of projects developed by the Advanced Clean Energy Storage Joint Venture (ACES Delta, LLC), which will be the largest green hydrogen platform in the world when completed. Thanks to this equity financing, construction can begin in June 2022 and operations of the hydrogen hub are expected to begin in 2025.
Investors in Haddington ESP are Alberta Investment Management Corporation (AIMCo), GIC, Manulife Financial Corporation (Manulife) and the Ontario Teachers’ Pension Board (Ontario Teachers’). In addition to the initial investor commitment of $650 million, they have additional rights to increase their collective investment to $1.5 billion.
“This is a critical investment for Western states looking to meet their aggressive decarbonization goals,” said John Strom, managing director of Haddington Ventures. “The ACES Delta hub will be larger than any existing green hydrogen production and storage site by a factor of 10, which is the scale needed for electric utilities. The project builds uniquely on easily scalable electrolyser technologies with several large salt dome storage caverns to make a significant environmental contribution.
ACES Delta is developing the Green Hydrogen Storage Center near Delta, Utah with electrolyser capacity to produce up to 100 metric tons per day of green hydrogen under long-term contract with the Intermountain Power Agency (IPA). IPA is made up of 23 Utah municipalities and owns the Intermountain Power Project (IPP). IPP supplies electricity to IPA members, six rural electric cooperatives and municipal utilities in Southern California, including Los Angeles, Burbank and Glendale.
The seed funding from Haddington ESP will fund a project to use renewable energy resources to power 220 megawatts of electrolysers that will split water into hydrogen and oxygen. The resulting zero-carbon green hydrogen will be stored in salt-domed storage caverns and made available upon request to IPA, which intends to use the hydrogen in its cycle natural gas plant. combined to generate electricity for project participants.
Construction of the initial phase of the hub, which is currently underway, will help create up to 400 local construction jobs over the 3-year construction cycle and bring significant tax revenue to local services in the hub. county such as law enforcement, infrastructure, and others.
ACES Delta is a joint venture between Mitsubishi Power Americas and Magnum Development, a managed holding company of Haddington Ventures. The Haddington/Magnum team brings its experience in the development, construction and operation of underground salt storage, while Mitsubishi Power Americas brings its experience and technology support for electrolyzers and other power-related elements . For more information, please visit aces-delta.com.
“AIMCo is excited to participate in the ACES Delta platform alongside strategic partners, who are aligned to help the Delta site become a key hydrogen production and storage center for the western United States. Hydrogen is expected to play a critical role in achieving the current and future decarbonization goals of many industries and stakeholders. We believe that the long-term contractual nature of the initial project aligns well with the strategic objectives of our clients’ portfolios and the potential for future investments in this growing sector. »
Ben Hawkins, Manager, Infrastructure, Renewable Energy and Sustainable Investing AIMCo
“We strongly believe that green hydrogen will play a key role in decarbonization in the United States, where long-term storage will be essential for greater penetration of renewable energy and to meet fluctuations in electricity demand. off-season. As a long-term investor, we are excited to partner with this strong group of like-minded developers and exchange partners to position ourselves well for the growing hydrogen economy.
Ang Eng Seng, Director of Infrastructure Investments for GIC
“Manulife is delighted to extend its long-standing investment relationship with Haddington Ventures and to partner alongside these strategic investors in projects developed by ACES Delta. We believe ACES Delta is uniquely positioned to build a large-scale green hydrogen production and storage platform to meet growing customer demand. This investment supports our goals to facilitate the decarbonization of energy sources and grow our $42 billion green investment portfolio.
Adam Wise, Head of Natural Resources and Sustainable Solutions, Manulife
“We are proud to invest in one of the largest and most advanced green hydrogen projects in the United States. Teachers’ is committed to decarbonization and the energy transition and we believe that the production and storage of green hydrogen will play a vital role in this transition. We see the ACES Delta platform as the start of a long term partnership with a high quality developer.
Chris Ireland, Managing Director, Greenfield and Renewable Energy at Ontario Teachers’.
Legal representation for Haddington ESP’s investors was provided by Sidley Austin LLP, while Haddington Ventures was represented by Willkie Farr & Gallagher LLP.
About Alberta Investment Management Corporation
Alberta Investment Management Corporation, AIMCo, is one of Canada’s largest and most diversified institutional investment managers with over C$168 billion in assets under management as of December 31, 2021. AIMCo invests globally on behalf of 32 pension, endowment and government funds in the province of Alberta.
The AIMCo Infrastructure group manages a portfolio of over C$10.5 billion of investments, consisting primarily of long-term equity positions in OECD-based infrastructure assets. These assets generally provide essential services to the public and are either regulated or have highly contracted income with the potential for long-term capital appreciation. AIMCo’s infrastructure investments are intended to match the characteristics of long-duration real-return assets with inflation-indexed pension liabilities.
About the GIC
GIC is a leading global investment firm established in 1981 to secure Singapore’s financial future. As Singapore’s foreign exchange reserve manager, GIC takes a disciplined, long-term investment approach and is uniquely positioned across a wide range of globally active asset classes and strategies. These include equities, fixed income, real estate, private equity, venture capital and infrastructure. Its long-term approach, multi-asset capabilities and global connectivity make it an investor of choice. GIC seeks to add significant value to its investments. Headquartered in Singapore, GIC has a global talent force of over 1,800 people in 10 key financial cities and has investments in over 40 countries.
Manulife Financial Corporation is a leading international provider of financial services that helps people make decisions easier and live better lives. With our global headquarters in Toronto, Canada, we provide financial advice and insurance, operating as Manulife in Canada, Asia and Europe, and primarily as John Hancock in the United States. Through Manulife Investment Management, the global brand for our global wealth and asset management business, we serve individuals, institutions and pension plan members around the world. At the end of 2021, we had more than 38,000 employees, more than
119,000 agents and thousands of distribution partners, serving more than 33 million customers. Our main operations are in Asia, Canada and the United States, where we have served our customers for over 160 years. We trade as “MFC” on the Toronto, New York and Philippine stock exchanges and as “945” in Hong Kong. Over the past 12 months, we have issued C$32.7 billion in payments to our customers.
Not all offers are available in all jurisdictions. For more information, visit manulife.com.
The Ontario Teachers’ Pension Board is a global investor with net assets of C$241.6 billion as of December 31, 2021. We invest in more than 50 countries in everything from stocks and real estate to infrastructure and growth provide retirement income to 333,000 current and retired Ontario teachers.
With offices in Hong Kong, London, San Francisco, Singapore and Toronto, our more than 350 investment professionals bring deep expertise in sectors ranging from agriculture to artificial intelligence. We are a fully funded defined benefit pension plan and have earned a total annual net return of 9.7% since the plan’s inception in 1990. At Ontario Teachers’, we don’t just invest to make a return, we invest to shape a better future for the teachers we serve, the businesses we support and the world we live in. For more information, visit otpp.com and follow us on Twitter @OtppInfo.
About Haddington Ventures
Founded in 1998, Haddington Ventures, LLC oversees a growing portfolio of successful conventional and renewable energy companies that are bringing innovative new infrastructure to the energy sector in the United States. Haddington’s unique combination of industry knowledge, investment experience and operational expertise provides a significant advantage in identifying and creating value in its investment opportunities. Generally, Haddington invests in companies whose operations meet the broad operating and infrastructure needs driven by growing energy demand.