HMC unveils new-look energy development arm to advance pipeline of “fully funded” projects

HMC Capital has settled on a name for its growing portfolio of energy assets, moving on from the intermediary title of ‘HMC Energy Transition Platform’ to an enlightened new moniker.

HMC, which launched its Energy Transition Fund in 2024 with former prime minister Julia Gillard as its chair, says the newly named Illuma Energy will house battery developer Stor-Energy, in which HMC bought a controlling stake in 2024, and the then-$950 million of Neoen’s Victorian assets bought later that same year. 

It will also capture the $603 million investment from KKR that HMC Capital landed earlier this year to develop its pipeline of energy assets.

A statement from HMC Capital says the “near-term” energy pipeline is “fully funded to FID-ready status.”

That list will include the 300 megawatt (MW), 1,200 megawatt-hour (MWh) Moorabool battery near Geelong which is 90 per cent equity funded by KKR, and likely the 600 MW Kentbruck wind project, located in a pine plantation in Victoria, which has its state planning permission in hand. Both have federal underwriting agreements.

HMC Capital now has some 650 MW of operating wind, solar and battery assets, including the Bulgana wind farm, and an overall development pipeline of 5.7 gigawatts (GW).

“The Illuma Energy launch and the KKR financial close mark an important milestone for the platform,” said Gerard Dover, CEO of the new brand, in a statement.

“With the right capital partners and team in place, and a strong project pipeline, Illuma Energy is well positioned to play a major role in Australia’s energy future.”

HMC Capital’s original idea in 2024 was to flip all of its energy assets into a new fund, but it struggled to attract sufficient interest and was forced to drop plans for “peripheral” technologies such as green hydrogen.

It had wanted to raise $1 billion in equity capital in addition to debt, but said in February the smaller KKR investment allowed it to “introduce new capital partners in future.”

The KKR deal provided $355 million in cash up front, followed by a second tranche of $248 million.

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