Hamilton Locke advised Birdwood Energy on the formation of the Birdwood Distributed Energy Platform and the investment in the platform by Aware Super.
Aware Super has made an initial commitment of $300 million to the platform which is expected to be deployed over the next one to two years. The investment by Aware Super is understood to be the first significant investment by an Australian superannuation fund into the distributed energy sector.
The platform allows Aware Super to invest in smaller projects which can be deployed faster and have lower development risk and quicker grid connections, all augmented by battery storage. The transaction marks the beginning of an exciting journey to fulfil Australia’s future energy requirement and the platform has already invested in a commercial renewable asset finance business, Juice Capital Energy which the Hamilton Locke team also advised on.
Birdwood Energy’s Managing Partner, Scott McGregor said “we welcome Aware Super as our platform investment partner, deploying investment at scale we look forward to contributing to getting the energy infrastructure in Australia to Net Zero as fast as possible. Many thanks to the full team at Hamilton Locke for working hard to complete this transaction.”
Commenting on the partnership, Matt Baumgurtel, New Energy Lead said “It was a delight to support Birdwood Energy to form the Birdwood Distributed Energy Platform and the investment in the platform by Aware Super”. In relation to the distributed energy market and Hamilton Locke’s expertise, Matt Baumgurtel, New Energy Lead said “the opportunity for distributed energy resources is enormous – potentially up to 60% of total electricity generation – without the need for substantial transmission upgrades which can be expensive and slow to be deployed” and “the Birdwood Distributed Energy Platform transaction builds upon Hamilton Locke’s leading distributed energy market experience having previously advised Green Peak Energy in relation to CBRE AUD100m investment, with many more in the pipe”
Commenting in relation to the opportunity for super funds to invest in the distributed energy sector Matt Baumgurtel, New Energy Lead said “platforms and aggregated investment vehicles such as the Birdwood Distributed Energy Platform within which smaller renewable generation and energy storage projects are originated, developed, constructed and operated on an aggregated basis provide superfunds and similar investors with a scalable diversified ESG focused investment expected to generate strong risk adjusted returns when compared to large-scale renewable generation investments”
The Hamilton Locke team comprised of New Energy Lead, Matt Baumgurtel, Partners Jo Ruitenberg and Erik Setio, Special Counsel Adriaan van der Merwe, Senior Associate Hannah Jones and Lawyers Nick Huett, Annabelle Parmegiani and Zane O’Neill. The Hamilton Locke team thanks our co-advisors at Pottinger (John Sheehy, Rodrigo Arias López and Vedant Rampal).
The Hamilton Locke team advises across the energy project life cycle – from project development, grid connection, financing, and construction, including the buying and selling of development and operating projects. For more information, please contact Matt Baumgurtel.