AP Moller Capital Acquires Mainstream Renewable Power South Africa

AP Moller Capital, a global institutional fund manager, has announced its acquisition of Mainstream Renewable Power South Africa via its Emerging Markets Infrastructure Fund II. This strategic move solidifies AP Moller Capital's commitment to investing in critical infrastructure assets that foster economic progress and support the global transition to clean energy across burgeoning economies. The South African entity, known for its substantial operational capacity and extensive development pipeline in solar, wind, and battery storage projects, will now benefit from the financial and operational backing of an experienced infrastructure investor, poised for its next phase of significant expansion and market leadership.

The transaction involves the transfer of ownership of Mainstream Renewable Power South Africa to a special purpose vehicle under AP Moller Capital's fund. Mainstream Renewable Power South Africa, established in 2009, boasts an impressive operational footprint, including 148MW of projects either fully functional or currently under construction. Furthermore, it possesses an additional 351MW of projects that are construction-ready, along with a robust development pipeline amounting to approximately 11.6GW, encompassing diverse renewable energy sources such as solar, wind, and battery storage solutions.

Mainstream Renewable Power South Africa operates a fully integrated business model, managing all aspects from project development and delivery to asset management, energy trading, and comprehensive operations and maintenance. The company has established strong relationships with key corporate clients within South Africa, including significant collaborations with industry leaders like Sasol and Air Liquide. This acquisition is expected to further enhance its capabilities and market reach, leveraging AP Moller Capital's extensive experience and resources.

Julie Berg, CEO of Mainstream Renewable Power, expressed her satisfaction with the agreement, noting that Mainstream South Africa's integration into EMIF II's portfolio would provide crucial support for its future growth trajectory. She emphasized that this alignment would enable the South African business to thrive under the guidance of a seasoned infrastructure investor, particularly as Mainstream Renewable Power sharpens its focus on a select number of core markets.

Jens Thomassen, a partner at AP Moller Capital, highlighted that the acquisition is a testament to the South African entity's high quality, its experienced management team, and its proven track record in the renewable energy sector, as well as its substantial development pipeline. He underscored the investment's role in bolstering their energy transition strategy and achieving their ambition to cultivate a leading independent power producer within South Africa, especially in light of the escalating demand for power and new generation capacity.

The successful completion of this acquisition remains subject to obtaining the necessary regulatory approvals and other third-party consents. This acquisition is a strategic alignment with AP Moller Capital's broader vision to invest in infrastructure that drives sustainable development and energy evolution across dynamic emerging markets. Their prior investments in various energy ventures across Africa and Asia, including notable projects in Cabo Verde, Kenya, West Africa, Nigeria, and South East Asia, underscore their global commitment to the renewable energy landscape.

This acquisition underscores AP Moller Capital's commitment to bolstering the renewable energy sector in emerging markets. By integrating Mainstream Renewable Power South Africa into its portfolio, the fund aims to accelerate the deployment of clean energy solutions and support South Africa's growing power demands, reinforcing its position as a key player in the global energy transition.