HMC Capital said it has committed equity to develop its first new-build battery storage project in Australia, a 300MW/1,200MWh facility in Victoria, with around 2GW of further renewables and storage projects moving toward final investment decisions (FID) over the next two years.
HMC Capital is an ASX-listed alternative asset manager. Its energy platform, Illuma Energy, was launched in July 2026, consolidating the company’s wind, solar and battery storage investment, development and operating activities under a single brand.
In its results announcement for the 2025-26 financial year, HMC said Illuma Energy had AU$1.5 billion (US$1.08 billion) invested across the three technologies and a development pipeline of around 5GW across 19 projects, valued at roughly AU$10 billion.
HMC Capital chief operating officer Victoria Hardie said the company now has committed equity for its first battery energy storage system (BESS) project, alongside around 2GW of further developments advancing toward FID over the coming years.
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The project in question, though not yet formally confirmed, is expected to be the Moorabool BESS, a 300MW/1,200MWh facility sited next to AusNet Services’ Moorabool Terminal Station, around 13km northwest of Geelong, immediately adjacent to HMC’s existing 450MWh Victorian Big Battery.
Moorabool secured a Capacity Investment Scheme Agreement (CISA), providing a long-term federal government revenue underwrite that de-risks project economics.
KKR partnership funds up to 90% of the project’s equity
The capital underpinning Moorabool traces back to a February 2026 strategic partnership between HMC and global investment firm KKR, which committed up to AU$603 million (US$423 million) to Illuma Energy’s platform, structured as an initial AU$355 million investment at financial close, plus up to AU$248 million earmarked specifically for the platform’s first battery storage development.
That AU$248 million commitment will fund up to 90% of the Moorabool project’s equity component, according to Hardie, reducing HMC’s direct capital exposure while preserving its participation through equity and management fees.
Hardie told an investor webcast that Illuma Energy’s operating portfolio stands at 652MW, of which 85% is contracted, describing the platform as now ranking among the top ten in the National Electricity Market (NEM) by scale.
The operating portfolio at the centre of Illuma Energy was built primarily through two transactions.
In August 2025, HMC completed a AU$950 million acquisition of Neoen’s Victorian portfolio, which included the 350MW/450MWh Victorian Big Battery, a deal required as a condition of Canadian asset manager Brookfield’s takeover of Neoen after Australia’s competition regulator objected to Brookfield simultaneously holding Neoen’s Victorian generation and storage assets alongside AusNet’s transmission network in the state.
HMC also holds a controlling stake in Australian BESS developer StorEnergy, which it acquired in 2024 and has since folded into the Illuma Energy platform.
HMC managing director and CEO David Di Pilla said Illuma Energy was positioned as a long-term growth vehicle for the group as its development projects progress toward FID, including Moorabool following its CIS agreement award.
KKR has in the past invested in numerous energy storage industry players, including US developers Stellar Renewable Power and Peregrine Energy Solutions, UK renewable energy independent power producer (IPP) ContourGlobal and (now bankrupt) BESS integrator Powin, but has drawn criticism for its investments in fossil fuel industries.
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