HMC, KKR tie up receives ACCC approval

The partnership between HMC Capital and KKR, in which the latter will commit $603 million, has been given the good to go by the Australian Competition and Consumer Commission (ACCC).

The Foreign Investment Review Board (FIRB) has also approved the deal. Financial close is expected to occur on or around June 30.

KKR will inject up to $603 million into the HMC Energy Platform, which will be rebranded and operate under the name Illuma Energy.

About $355 million will be deployed at financial close and up to $248 million will fund the first battery energy storage system (BESS) development.

HMC will receive a $35 million establishment fee in FY26, while its invested capital in the energy platform will reduce to $190 million.

Illuma Energy comprises a portfolio of renewable energy and storage infrastructure, including 652MW of installed wind, solar and BESS capacity.

The platform includes the StorEnergy and the Neoen Victoria, which formally merged last year.

The Neoen portfolio complements the existing Stor Energy BESS development pipeline and "provides substantial day one operational scale of 652 MW (maximum capacity) installed across four operational assets and a high-quality 2.8 GW development pipeline," HMC said.

HMC subsequently added the Neoen Victorian development team to its network to continue to focus on delivering near-term projects, including the 600MW Moorabool BESS and 600MW Kentbruck Wind Farm.

HMC chief executive and managing director David Di Pilla said: "The KKR partnership introduces an aligned global capital partner and funds the next phase of the Platform's growth. KKR's committed funding combined with the recent CISA award at Moorabool underpins continued momentum across the Platform and supports progress towards a targeted FID for our first BESS development in 2026."

Di Pilla added Illuma Energy is focused on expanding its portfolio through new battery storage and wind developments that support grid reliability and Australia's energy transition targets.