Infratil Newsletter - September 2024

During the last quarter, we celebrated Infratil ’s 30th anniversary, marking a significant milestone in our journey. As part of these celebrations, we shared a video titled Everything Begins with an Idea, highlighting the visionary thinking of Lloyd Morrison in 1994. His bold idea was that by investing in infrastructure, we could positively impact everyday lives and shape a better future, which led to the founding of Infratil.

During the quarter, we also announced?our support for Contact Energy’s proposed acquisition of Manawa Energy , in which we have a 51% shareholding, through a Scheme Implementation Agreement. If the Scheme proceeds as planned, Infratil expects cash proceeds of approximately NZ$186 million and will hold around 9.5% of Contact Energy post-transaction. The proposed transaction is the next step in a 30-year relationship with Manawa, which began with Infratil’s 1994 initial public offering, when Trustpower – as Manawa was then known – was our first investment.

The Scheme is anticipated to take 6-9 months to implement, and is subject to several conditions and termination events, including approval from the New Zealand Commerce Commission.

We were also pleased to release our FY2024 Climate Related Disclosures (‘CRD’). This was our second CRD report, and the first under the mandatory NZ Climate Standards regime. We have sought to be consistent with our FY2023 CRD where appropriate, to support comparability, whilst also building on the information provided last year to align with the requirements of the NZ Climate Standards.

Across our Portfolio

Digital

Data centres have recently come under scrutiny for their significant water consumption, with many using millions of litres of clean drinking water daily for cooling. As AI workloads grow, this practice is becoming unsustainable for the industry’s social licence to operate. In this article, CDC highlights its efforts to address the issue, saving 5,000 million litres of clean drinking water annually through its innovative cooling solutions.

The UK’s decision to designate data centres as Critical National Infrastructure is a significant milestone for the industry and reinforces the essential role data centres, like those operated by Kao Data, play in powering key sectors. The Kao Data team has discussed how this designation will ensure increased government support and resilience for data centres, safeguarding against critical risks and advancing the UK's digital infrastructure.

One New Zealand has announced the upcoming launch of EonFibre, a dedicated fibre business designed to enhance connectivity for wholesale customers, including hyperscalers. Set to go live later this year, EonFibre will leverage greater independence from One NZ’s retail division to optimise fibre utilisation amidst rising data consumption. Positioned as a high-performing, cost-effective, secure, and resilient fibre alternative, EonFibre will focus on delivering services to wholesale business clients.

Renewables

Longroad Energy recently celebrated the completion of the Three Corners Solar project, Maine's largest utility-scale solar installation at 152 MWdc. Three Corners Solar is expected to achieve avoided emissions of approximately 140,000 metric tons of CO2 annually.

Galileo has announced the acquisition of an additional 65% stake in Pagra, a rapidly growing provider of solar PV rooftop installations supplying green electricity to industrial and commercial customers in Poland. After initially securing a 35% minority stake in July 2022, Galileo's move to full ownership underscores its commitment to driving Pagra’s growth and expanding its footprint in the Polish energy market.

Gurīn Energy 's joint venture, Vanda RE, has reached a significant milestone, securing a Conditional Licence from Singapore’s Energy Market Authority to export green energy from Indonesia to Singapore. Announced at the Indonesia International Sustainability Forum, this licence is a key step towards commercial viability for the Vanda solar & battery project.?

Set to deliver 300MW of zero-emission electricity to Singapore by 2028, the project is one of the largest of its kind globally, marking an important advance in the establishment of a green electricity trading corridor between Indonesia and Singapore.

Healthcare

Construction is underway at RetireAustralia 's newest retirement village at Yeronga in Brisbane. The new retirement village, Arcadia Retirement Living, is a key part of the Yeronga Priority Development Area led by Economic Development Queensland and will include 159 independent living apartments and a 10-suite care hub.

Airports

Wellington Airport new fire training simulator, a converted grain silo designed to resemble an aircraft, has been making news. Though it looks like a small black plane, it never takes to the skies. Instead, it plays a crucial role in preparing the airport's firefighting team for aircraft emergencies. The simulator features 24 steel seats, smoke machines, and a heating system that can reach up to 80°C, offering realistic fire scenarios. This innovative project has been a game changer for the Wellington Airport Fire Service, providing enhanced training for rapid response to incidents.?

Thanks again for your continued support of Infratil. As we reflect on our 30-year journey, we remain focused on the future, continually innovating and building on the foundations that have made Infratil what it is today. From our climate initiatives to the expansion of our digital and renewable energy platforms, we’re committed to shaping a more sustainable, connected, and resilient world.

Stay tuned for more updates as we continue to invest in the future and be sure to follow us on LinkedIn for the latest news and insights.