Canadian pension fund OPTrust has invested a 51 per cent stake in Melbourne-based energy retailer Flow Power.
Operationally, the company will continue to function as usual, with the leadership team and existing Australian shareholders remaining the same.
As a result of this ownership change and investment, Flow Power will expand its Melbourne office, as well as looking at establishing a presence in Sydney, Adelaide and Brisbane, which will create about 50 jobs in the next year.
The investment also includes Flow Power’s sister company, Utilacor.
Flow Power managing director Matthew van der Linden said the company was “delighted to have the backing of such a respected player as OPTrust”.
“We look forward to the opportunities it will enable Flow Power to provide for customers as we continue our momentum in transforming the Australia power market,” he said.
Flow Power recently became the first electricity retailer to bring corporate renewable power purchase agreements (PPA) to Australia – a model proven to be successful in the United States and Europe – as well as participating in a number of programs to increase cost-effective demand response capacity in Australia.
OPTrust’s Sydney-based managing director Stan Kolenc will join the Flow Power board.
“We were drawn to Flow Power as a first mover in an industry that is well suited to a company as innovative as Flow Power,” Mr Kolenc said.
“Flow Power’s IP and technology hold real promise, and we are excited about the opportunity to grow the company.”
Through its locally developed proprietary technology, Flow Power gives its customers the ability to control load in response to price fluctuations, while still being scalable.
Flow Power’s FLOW PWOER was designed to meet a specific need and solve a complex problem for which there was no off-the-shelf solution.
“Australia is a key market for us, and has seen significant growth in recent years,” Mr Kolenc said.
“Carefully selecting the right investments is our key priority, as we are looking to back more ethical, innovative and profitable companies like Flow Power.”