CPP Investments partners with IKAV to acquire Aera Energy

Posted On: March 3, 2023

class in: Business, Environment, Science and Technology, Oil Exploration, Hunting, Fishing and Nature
Subjects : Joint ventures, environmental issues

The partnership will accelerate Aera Energy’s ability to further reduce carbon intensity and support the development of carbon capture and storage and other emerging technologies.

TORONTO and HAMBURG, Germany, March 2, 2023 /PRNewswire/ — Canada Pension Plan Investment Board (CPP Investments) will join forces with international asset management group IKAV to acquire California-based energy producer AeraEnergyLLC.

In September 2022, IKAV, which has deep expertise in the renewable energy space as well as a solid track record of managing traditional energy assets in the United States, announced its intention to acquire AeraEnergy. CPP Investments, one of the largest institutional investors in the world, has agreed to buy 49% of Aera Energy IKAV. Formed as a joint venture between Shell and ExxonMobil, Aera Energy is California’s second-largest oil and gas producer, accounting for nearly 25% of the state’s production.

IKAV, CPP Investments and Aera Energy recognize that addressing the complex challenge of climate change requires large-scale innovation in the global economy. CPP Investments and IKAV intend to help Aera balance its energy transition efforts with the need to continue meeting California’s traditional energy needs by investing in a renewable energy portfolio that powers existing Aera operations. Over time, renewable energy will be deployed on Aera’s properties while reusing some of the existing oil and gas infrastructure to create carbon capture and storage capabilities.

Constantin von Wasserschleben, CEO of IKAV, commented: “We agree with CPP Investments in our commitment to a smooth and sustainable transition to renewable energy. By delivering an Aera energy solution that combines renewable energy growth with the safe and responsible operation of traditional energy assets, we are taking the right steps to align California’s energy needs with its future climate goals.

Bruce Hogg, Managing Director, Head of Sustainable Energy at CPP Investments, commented: Our investment in AeraEnergy builds on a number of investments we have made to help California make the transition to a safe and clean energy supply, while providing long-term risk-adjusted returns for the CPP fund. CPP Investments believes that enabling emission reduction and business transformation in the energy sector as part of the overall economy’s transition can generate strong returns for long-term investors, and partnering with an investor like IKAV who shares the same values is a great opportunity to do so Apply investment approach to decarbonization.

Erik Bartsch, President and CEO of AeraEnergy, commented: We are pleased that IKAV and CPP Investments have joined forces to invest in AeraEnergy. This shows us that they believe in meeting the energy needs of Californians for decades to come and that they have confidence in our ability to deliver innovative solutions that will help the state meet its aggressive climate goals. Aera will continue to power the California economy and embody its values of exceptional care for people and the planet. We also remain committed to the principles that make us an employer of choice and a valued partner in the communities where we live and work. ?

About IKAV

IKAV is an international wealth management group with headquarters in Germany and local offices in LuxembourgItaly, Spain, Portugalin the United States and France. The group was founded in 2010. It offers institutional investors investment solutions covering a wide range of infrastructure energy assets, including solar, concentrated solar, wind, energy efficiency, geothermal, thermal and upstream. IKAV is a buy & hold investor using a vertically integrated business model to optimize its investment portfolio and align its assets with the global net-zero issuance strategy over the coming decades. To learn more, please visit the websiteikav.com.

About CPP Investments

The Canada Pension Plan Investment Board (CPPInvestmentstm) is a professional investment management organization that manages the fund in the best interests of Canada’s 21 million pension plan contributors and beneficiaries. Canada. In order to diversify the asset portfolio, investments are made worldwide in public shares, private equity, real estate, infrastructure and fixed-income securities. With seat Toronto and offices in Hong Kong, London, Luxembourg, BombayNew York, San Francisco, SoPaulo and SydneyCPP Investments is regulated and managed independently by the Canada and at a distance from governments. As of December 31, 2022, the fund was $536 billion. To learn more, please visit the websitewww.cppinvestments.comor continue to follow the companyLinkedIn,FacebookOrTwitter.

About AeraEnergy LLC

AeraEnergy is a California company that has long been a leader in the energy sector, which accounts for nearly 25% of the state’s oil production. Founded in 1997 and headquartered in Bakersfield, the company is known for its outstanding safety and environmental performance, innovative business practices, application of advanced technologies, dynamic corporate culture and valued partnerships with the community. Because operations are centered in the San Joaquin Valley, much of Aera’s oil production is from Kern County. Aera also has active field operations in Ventura, Monterey and Fresno counties. To learn more, please visit the websitewww.aeraenergy.comor follow the company on LinkedIn, Facebook or Twitter.

Aera Media Contacts: Cindy Pollard, Director of Public Affairs,[email protected]Tel: +1 (661) 665-5602; KimberlyEllis, Public Affairs Advisor,[email protected], Tel: +1 (661) 665-5627; or IKAV media contacts: Patrick Evans + Will Easton, Citigate Dewe Rogerson,[email protected], [email protected],[email protected];CPP Investments media contacts: Asher Levine + Frank Switzer, Public Affairs and Communications,[email protected]