HMC Capital and KKR announced the establishment of a new strategic partnership under which KKR-managed funds will invest up to $603 million into HMC's Energy Transition Platform (the "Platform"). The investment will introduce KKR as a strategic partner alongside HMC in the Platform's existing 652MW operational assets and its 5.7GW BESS and wind development pipeline. KKR's investment will support the Platform's continued expansion, including the development of new battery storage and wind projects critical to grid reliability and Australia's energy transition.
The investment needed to fund Australia's energy transition is considerable, and the Platform is well-placed to bring to market its significant clean energy generation capacity to support the growing energy demand from consumer, industrial and emerging AI users over the coming decades. This transaction establishes the foundation for HMC and KKR to significantly scale the existing Platform and identify growth opportunities alongside the Platform's experienced management team. KKR is funding this investment from its Global Climate Transition strategy.
The firm has committed more than USD 44 billion to climate and environmental sustainability investments since 2010 and is a leading investor in the energy transition. This marks KKR's second Climate investment in Australia, following CleanPeak, an Australian distributed energy platform. Other KKR Climate investments include Zenobe, a UK-based transport electrification and battery storage solutions specialist; Eawsongroup, an independent asset leasing business which provides a diverse range of business-critical solutions; Avantus, a solar and solar-plus-storage developer in the US; and IGNIS P2X, an industrial decarbonisation platform in Spain.
The transaction is expected to close in mid-2026, subject to customary regulatory approvals.
