The fund is set to expand its renewable energy exposure by taking a stake in Atmos Renewables, enhancing long-term returns and diversification.
Cbus Super announced it will take an equity stake in Atmos Renewables (Atmos) in a move aimed at strengthening its infrastructure portfolio, delivering sustainable long-term returns for members and supporting the nation’s energy transition.
The investment, made in partnership with existing Cbus Super investment manager Igneo Infrastructure Partners, increases the fund’s exposure to contracted renewable energy assets across multiple markets and technologies.
Atmos operates and is developing 18 renewable energy assets with a combined capacity of 1.5 gigawatts, spanning the National Electricity Market and wholesale electricity market.
Its portfolio includes projects in Queensland, NSW, Victoria, Tasmania, South Australia, and Western Australia.
Under the terms of the deal, Igneo Infrastructure Partners will retain decision-making control of Atmos, which it founded in 2020 to invest in renewable projects across their life cycle.
According to Cbus, the investment will go toward funding two major transactions.
The first is the $220 million Merredin Battery Energy Storage System in Western Australia, which is Atmos’ first greenfield development and battery project to reach financial close.
The 100 megawatt/400 megawatt-hour system is expected to be operational by mid-2027, with 70 construction jobs created, and will provide additional grid stability and energy security.
The second is the acquisition of the remaining 76.6 per cent stake in the 316-megawatt Hornsdale Wind Farm in South Australia, taking Atmos’ ownership to 100 per cent and expanding its contracted income base.
So far, Cbus has allocated more than $2.1 billion to renewables and enabling infrastructure, consistent with its broader strategy of targeting long-term, stable cash flows from infrastructure investments.
Cbus chief investment officer Leigh Gavin said the transaction reflects the fund’s strategy to invest in high-quality, income-generating assets with growth potential.
“Atmos’ geographic diversity, long-term contracts and potential development pipeline make it a highly attractive investment,” Gavin said. “First and foremost, we believe this investment will stack up on returns, but also has the additional benefit of supporting a sustainable energy future for Australians.”
Gavin added Atmos’ diverse renewable capabilities and management under Igneo make it a strong partner, offering solid returns while boosting Cbus’ exposure to Australia’s energy transition and supporting an industry employing many members.
“As well as providing long-term investment returns, the investment supports Australia’s renewable energy industry, a sector that employs many Cbus members. And importantly our portfolio gains more exposure to Australia’s energy transition via a diverse range of renewable energy assets,” Gavin said.
