Why investors are eyeing the energy transition

Chris Ireland, Ontario Teachers’ Senior Managing Director of Greenfield Investments and Renewables, shares insights into what's driving the demand for renewables and emerging trends within the sector.

At a glance

Bolder climate ambitions, a heightened focus on energy security and the rise of climate-centric industrial policies are all driving demand for renewable energy.
Beyond wind and solar, Ontario Teachers’ is exploring opportunities in energy storage solutions, hydrogen technology, advanced nuclear energy and renewable fuels.
As we approach our target of $50 billion in green assets, within our investment portfolio we plan to explore more opportunities and tech that contributes to environmental stewardship and long-term value creation.
Some of our recent investments in renewables include an offshore wind farm in Scotland; a green hydrogen storage platform in Utah; a major player in India’s solar sector; and an energy infrastructure developer in the Asia-Pacific region.

Finding opportunities in the energy transition

Powerful forces are driving increased investment in the energy transition more broadly and in renewable energy, in particular. Ontario Teachers' already has over $34 billion in green assets. They include companies that generate clean energy, reduce demand for fossil fuels and help build a sustainable economy.

Recently, Chris Ireland, Ontario Teachers’ Senior Managing Director of Greenfield Investments and Renewables, discussed the opportunities in the energy transition with Pensions & Investments. Here are highlights from that interview along with additional insights on what’s driving demand for renewables.

What’s driving investment in renewable energy?

Which emerging technologies in the energy sector are proving to be attractive for an investor?

CI: We continue to explore a wide range of technologies beyond traditional wind and solar energy. These include energy storage solutions, hydrogen technology, advanced nuclear energy, renewable fuels and others. Hydrogen, for example, is a versatile and clean-burning energy carrier that can be stored in large amounts and for extended periods before being transformed into electricity. We’ve invested in a project called ACES Delta, which once completed will be the largest green hydrogen storage facility in the world, playing a role in the decarbonization of the Western U.S.

How is Ontario Teachers' adapting its investment strategy as the sector evolves? 

CI: We began our direct investment initiatives over 20 years ago and in the renewable sector 15 years ago, recognizing the potential for long-term value creation and alignment with our mission as a pension plan to secure sustainable returns for our members.

We already have a strong and diversified portfolio across the sector, positioning us to seize opportunities in the energy transition. We are on course to achieving our target of $50 billion in green assets. As we close in on this milestone, our focus will shift towards further diversification, innovation and sustainability within our investment portfolio by exploring new opportunities and technologies that contribute to environmental stewardship and long-term value creation.