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KKR and HASI launch $2B sustainable infrastructure partnership

Illustration of rows of solar panels with abstract shapes and money elements.

Illustration: Gabriella Turrisi/Axios

Investment groups KKR and Hannon Armstrong Sustainable Infrastructure Capital are partnering up to create a new $2 billion sustainable infrastructure partnership.

Why it matters: Infrastructure investors are ramping up financing in clean energy, storage and efficiency upgrades as companies and governments plow ahead on the energy transition.

Zoom in: The investors have created a permanent capital vehicle called CarbonCount Holdings 1 LLC, or CCH1, to invest in projects like rooftop and utility solar, fleet electrification and building HVAC upgrades across the U.S.

  • HASI and KKR are each committing $1 billion to the vehicle, which will be deployed over the next 18 months.

Catch up quick: KKR has already committed over $15 billion to energy transition and climate-related companies through its infrastructure funds.

The big picture: Global investments in the energy transition reached a record $1.8 trillion last year, up 17% from 2022, according to Bloomberg New Energy Finance.

  • Much of this investment will go toward the next generation of energy infrastructure needed like new clean power generation, zero-emission vehicles, and green building upgrades.
  • The IRA has helped create an environment to unlock these investments in the U.S.
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