The Canada Pension Plan Investment Board added to its energy infrastructure holdings with the acquisition of a majority stake in Tarchon Energy Ltd., the company lining up a subsea interconnector project to run between Germany and the U.K.
Acquired from Copenhagen Infrastructure Partners’ Copenhagen Infrastructure V fund, Tarchon is the C$793 billion ($569 billion) pension giant’s fourth major energy infrastructure investment in less than a year.
CPP Investments will invest approximately C$1 billion ($720 million) in Tarchon under a partnership with Belgian energy infrastructure company Elia Group’s WindGrid platform, which will hold a 25% look-through stake. Although CPP did not disclose the size of its share, WindGrid’s stake implies CPP Investments is holding the remaining 75%.
According to the announcement, Tarchon will provide a 1.4-gigawatt high-voltage direct current link between the countries, intended to bolster cross-border electricity flows and improve supply security. The project must still be approved by the relevant regulators in both the U.K. and Germany.
“The Tarchon interconnector project contributes to balancing supply and demand, while supporting the decarbonization of energy systems,” Elia Group CEO Bernard Gustin said in a statement. “The project also reflects the strength of the partnership between Elia Group and CPP Investments in advancing energy infrastructure, highlighting the continued importance of cross-border projects in building a more integrated, resilient and sustainable European grid.”
The deal is expected to close by the end of the year.
In February, CPP Investments announced an agreement to buy a 50% stake in Peruvian private power generation company Inkia Energy, which has a total enterprise value of $3.4 billion. The other half was to be acquired by a continuation vehicle led by private infrastructure investment firm I Squared Capital. CPP Investments and I Squared are looking to develop Inkia’s more than 4 GW worth of wind, solar, gas, and battery storage projects.
In October 2025, CPP Investments agreed to invest $1 billion for a strategic minority position in power generation platform AlphaGen, which owns and operates a portfolio of power assets with more than 11 GW in the U.S.
Last September, CPP Investments agreed to acquire an approximately 13% indirect equity stake in Sempra Infrastructure Partners for about $3 billion. The transaction is being completed alongside affiliates of private equity firm KKR. Sempra Infrastructure Partners owns and operates energy assets including natural gas pipelines, power generation facilities and liquefied natural gas export infrastructure in the U.S. and Mexico. The company also operates more than 1,600 MW of renewable generation assets, as well as a natural gas-fired power plant.
In August, CPP Investments announced that it was expanding its climate reporting to include portfolio-level measures of carbon intensity and transition governance for its assets.
The fund already reported on its portfolio emissions, but stated that the new metrics are intended to provide additional details on the climate characteristics of the portfolio, as well as how climate-related risks are being managed. The fund noted that the figures could change as companies’ climate strategies adjust, valuations shift, data quality improves, and the portfolio changes.
“We consider material risks, including climate-related risks and opportunities, to support risk-adjusted returns over decades, CPP Investments President and CEO John Graham said in a statement. “We know that progress towards a lower-carbon future will not be linear, and we are committed to continued transparency.”
Tags: Asset Allocation, CPP Investments, energy, Infrastructure