Energy Transition Strategic Partnership with KKR
| Stock | HMC Capital Ltd (HMC.ASX) |
|---|---|
| Release Time | 6 Feb 2026, 8:53 a.m. |
| Price Sensitive | Yes |
HMC Capital Establishes Energy Transition Partnership with KKR
- KKR to invest up to $603 million into HMC's Energy Transition Platform
- Funding to support development of 5.7GW BESS and wind pipeline
- Partnership to enable HMC to play major role in Australia's net zero transition
HMC Capital (ASX: HMC) has announced the establishment of a new strategic partnership with KKR, under which KKR managed funds will invest up to $603 million into HMC's Energy Transition Platform. The investment, funded by KKR's Global Climate Transition strategy, will introduce KKR as a strategic partner alongside HMC in the Platform's existing 652MW operational assets and its significant 5.7GW BESS and wind development pipeline. KKR's investment will support the Platform's continued expansion, including the development of new battery storage and wind projects critical to grid reliability and Australia's energy transition. The partnership has been structured to deliver significant benefits to HMC shareholders and is consistent with HMC's strategy to build scalable and high return on equity platforms. In addition to executing on the existing pipeline, HMC and KKR will explore new opportunities which leverage HMC's capability in Australia and KKR's deep global network and expertise. The transaction is expected to close in mid-2026, subject to regulatory approvals.
The operating assets formerly owned by Neoen generated operating EBITDA of $64 million in FY25. The construction of the initial BESS project will further increase the Platform's operating capacity and profitability once operating, with further projects expected to be FID-ready shortly after the initial project reaches FID. HMC expects to generate an equity IRR on its invested capital above its 20% return on equity target.
The partnership with KKR will enable HMC to materially grow the operating capacity, cash flow and progress the strategically valuable development pipeline of its Energy Transition Platform. The investment will also allow HMC to optimise its balance sheet exposure while retaining flexibility to introduce new capital partners in the future.