CPP Investments partners with Blackstone, investing $1.2bn in Tallgrass Energy to drive decarbonization efforts
Canada Pension Plan Investment Board (CPP Investments) has signed and closed a definitive agreement to invest approximately $1.2bn in Tallgrass Energy, an energy infrastructure company.
The company is actively engaged in initiatives that align with the global shift towards a lower-carbon future, including the development of CO2, hydrogen, renewable fuels, and decarbonized power assets.
“With a business strategy that combines traditional energy and decarbonization solutions, Tallgrass is an attractive investment opportunity because of its dual role in delivering against growing energy needs and increasing decarbonization opportunities,” stated Bill Rogers, managing director and global head of Sustainable Energies at CPP Investments.
“We are excited to partner with Blackstone and combine our investment and energy expertise to help support the Tallgrass team.”
Matthew Runkle, senior managing director and head of Renewables and Midstream within the Infrastructure Group at Blackstone, expressed enthusiasm about the partnership, saying, “Over the last five years, we have worked closely with Matt Sheehy and the Tallgrass management team to develop and operate industry-defining large-scale energy infrastructure.”
“We are delighted to welcome our long-term partner, CPP Investments, as a new investor in Tallgrass, combining our resources to support Tallgrass for continued growth.”
CPP Investments’ Sustainable Energies group actively participates across the global energy system, with net assets totalling approximately $34.2bn as of March 31.
This portfolio includes investments in renewables, conventional energy, carbon capture and storage, distributed and energy services, and emerging and disruptive technologies.
Tallgrass, headquartered in Denver, Colorado, operates a network of more than 10,000 miles of pipeline assets across 14 states in the United States.