HMC Capital says it has “committed equity” in place to develop its $A800 million flagship big battery project, a 300 megawatt and four-hour facility proposed for Victoria, and has another 2 gigawatts of near-term renewables and storage projects targeted for final investment decision.
In its results announcement for the 2025-26 financial year, the fund said its energy transition platform, Illuma Energy, was humming along nicely since its 2024 launch, with $A1.5 billion invested across wind, solar, and storage and a roughly $10 billion development pipeline of around 5 gigawatts (GW) across 19 projects.
Illuma got a major boost on June 30, when HMC sealed a strategic partnership with global investment giant KKR that delivered a $603 million injection of funds, including an initial $355 million at financial close and up to $248 million towards the first Battery Energy Storage System (BESS).
HMC Capital COO Victoria Hardie said on Wednesday that the $248 million capital commitment will fund up to 90 per cent of the equity component of the platform’s first battery project, which is expected – but not confirmed – to be the 300 megawatt (MW) and 1,200 megawatt-hour (MWh) Moorabool BESS.
“In energy, we have committed equity for our first BESS project, with around 2 GW of further developments moving towards FID over the next couple of years,” Hardie said.
The Moorabool BESS – one of the Victorian assets that HMC acquired from Neoen Australia for $950 million in 2025 – will be sited next to AusNet Services’ Moorabool Terminal Station, around 13 km north-west of Geelong, and next door to its existing Victoria Big Battery.
The Moorabool battery won a Capacity Investment Scheme contract with the federal government in June.
As well as Moorabool, Illuma’s near-term development pipeline includes the up to 400 MW and four-hour-plus Bawurra BESS, proposed for the Queensland Western Downs region, the 150 MW, four-hour Molong BESS proposed for central western New South Wales, and the up to 600 MW Kentbruck wind farm proposed for construction within a pine plantation in Nelson, in Victoria.
“We’ve now established a scaled, integrated renewables and storage platform, a top 10 platform in the national electricity market, with $1.5 billion of [assets under management] across wind, solar, and battery storage,” Hardie told an investor webcast.
“Importantly, we’ve transitioned energy from balance sheet seeding to institutional capital, with a development pipeline and multiple pathways to realise value over time.
“The platform has 652 MW of operating capacity, of which 85% is contracted, and a substantial development pipeline of around 5 GW across 19 projects,” said Hardie.
“The introduction of institutional capital gives us a capital-like growth pathway while preserving HMC’s exposure to platform value creation through our institutional partnership.
“And there are multiple pathways to realise value in the platform, including the introduction of additional third-party capital into the platform via syndication or to fund further growth, and a clear [assets under management] pathway of $3 billion-plus from near-term projects.”
HMC managing director and CEO David Di Pilla, who spent much the company’s half-year results webcast in February defending the value and potential of the energy platform, said this week that Illuma was well positioned for long-term growth.
“With development projects progressing towards FID, including the Moorabool BESS following its Capacity Investment Scheme Agreement award, Illuma Energy is positioned as a significant long-term growth vehicle for the Group,” Di Pilla told the webcast.
And in response to one analyst’s suggestion that the energy platform was “pretty highly geared,” Di Pilla was quick to respond.
“No, that’s quite the opposite,” he told the briefing. “It’s an appropriate level of gearing for an infrastructure business with high quality underlying cash flows, and it’s now got a major capital partnership with KKR, who have committed to fund future growth opportunities.”
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