The Canada Pension Plan Investment Board (CPP Investments) has teamed up with Brazilian investment business Votorantim to launch a company in Brazil focused on investing in the energy transition globally.
The new business, named Floen, is a 50-50 partnership that will target investments in high-growth companies with technology that can address the world’s growing demand for affordable, reliable, sustainable energy. This includes areas such as new generation sources and storage, green hydrogen, alternative fuels and materials, mobility solutions, energy efficiency and carbon management.
“CPP Investments is actively investing in the energy transition across the globe, and this joint venture will allow us to unlock Brazil’s significant potential to become a green powerhouse. We believe there is significant opportunity to deliver strong long-term risk-adjusted returns for the CPP Fund through Floen,” said Ricardo Szlejf, managing director, head of Latin America Infrastructure at CPP Investments.
Floen will be led by chief executive Raphaella Gomes, who previously worked as head of transition investments at major Brazilian energy producer Raízen, and as CEO of Raízen Geo Biogas.
“Floen inherits the investment blueprint of its shareholders; with energy industry expertise, a long term approach and patient capital. We are ready to support the company as it seeks to invest in innovative solutions and businesses that will accelerate the energy transition,” said João Schmidt, chief executive of Votorantim.
Votorantim is a Brazil-based, family-owned holding with a long-term investment orientation. Current portfolio companies have operations in 16 countries across various sectors, such as building materials, financial services, renewable energy, metals & mining, real estate, infrastructure and agriculture.