The French conglomerate is urgently introducing a new wave of solar and wind projects over the next 10 years.
Engie (EPA:ENGI), a multi-billion dollar energy firm based in France, is developing an investment fund in Australia designed to support 2 gigawatts (GW) of solar and wind energy projects over the next 10 years, Reuters reported.
Although the exact value of the fund was undisclosed, Augustin Honorat, CEO of Engie Australia and New Zealand, said that investors across pension funds and the financial industry have shown particular interest in the fund.
Previously having installed a 165 megawatt (MW) wind power project, Engie already has an 800 MW renewable energy project in the pipeline, Honorat told Reuters.
“It’s a way to grow faster,” said Honorat. Engie is focused on expediting the transition to renewable resources, and the fund serves as a catalyst behind its growth. Japan-based energy firm Mitsui & Co (OTC Pink:MITSY) has already agreed to invest in the fund.
With nearly two centuries in operation, Engie is one of the largest power companies in the world. It built the Suez Canal and provides natural gas to much of the French population. Despite being positioned as a traditional energy company, Engie is channeling significant resources to usher in a new wave of renewable energy alternatives.
The company stated in a press release that it was pivoting its focus to exclusively develop low-carbon power projects.
Though the transition to renewable energy has been slow, Engie is not the first conglomerate to develop a sustainable fund in Australia.
In 2016, AGL Energy (ASX:AGL) created the US$2 billion Powering Australian Renewables Fund to support 1,000 MW of renewable energy projects. The landmark initiative has funded the Silverton Wind Farm Project, Nyngan Solar Plant and the Broken Hill Solar Plant, among others.
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Securities Disclosure: I, Dorothy Neufeld, hold no direct investment interest in any company mentioned in this article.