I Squared Reveals Billion-Dollar Energy Play Exit Plans

By John Pranay (Editor)

US-based infrastructure investor I Squared is reportedly considering an exit from its Australian energy transition company, Octa, and its key subsidiary, Clean Energy Fuels Australia. The potential sale of these assets, valued at a billion dollars, is expected to be one of the largest infrastructure deals of 2026. The move comes six months after I Squared sold remote power specialist Zenith Energy for $1.7 billion.

I Squared acquired Octa in 2018, and the company has since expanded its operations in Australia's energy sector. Clean Energy Fuels Australia, a subsidiary of Octa, is a developer and supplier of liquefied natural gas. The company's assets are valued at a billion dollars, making the potential sale a significant event in the Australian energy market. The exact reasons behind I Squared's decision to exit Octa are unclear, but sources suggest that the company is exploring various options, including a sale or a merger.

The potential sale of Octa and its subsidiary, Clean Energy Fuels Australia, could have significant humanitarian and economic implications for Australia. The country's energy sector is a crucial component of its economy, and any changes to the market could impact local businesses and workers. Additionally, the sale could also affect international alliances, as energy companies from other countries may be interested in acquiring the assets. The Australian government has not commented on the potential sale, but it is likely to be closely monitoring the situation.

The potential sale of Octa and its subsidiary could have several regulatory, financial, and physical risks associated with it. The Australian energy market is heavily reliant on liquefied natural gas, and any changes to the supply chain could have significant implications for the country's energy security. Additionally, the sale could also impact the country's financial stability, as the assets are valued at a billion dollars. Regulatory risks are also a concern, as the sale could be subject to review by the Australian Competition and Consumer Commission (ACCC).

The next few weeks will be crucial in determining the outcome of the potential sale of Octa and its subsidiary. I Squared is expected to make a decision on the sale by the end of the first quarter of 2026. The Australian government may also hold hearings or reviews to assess the impact of the sale on the country's energy market. Additionally, energy companies from other countries may be interested in acquiring the assets, which could lead to a competitive bidding process.

The potential sale of Octa and its subsidiary is a significant event in the Australian energy market, and it highlights the growing trend of foreign investment in the country's energy sector. This trend is not unique to Australia, as many countries are seeking to attract foreign investment in their energy sectors to meet growing demand and reduce reliance on fossil fuels. However, this trend also raises concerns about the impact of foreign ownership on local businesses and workers. Crucially, this overlooks the fact that foreign investment can also bring in new technologies and expertise, which can benefit the local energy market. This suggests that a nuanced approach is needed to balance the benefits and risks of foreign investment in the energy sector.

On balance, this event screens as Neutral in our sentiment view.

1. I Squared launches beauty parade for billion-dollar energy infra play — https://www.afr.com/street-talk/i-squared-launches-beauty-parade-for-billion-dollar-energy-infra-play-20260113-p5ntpq

Methodology: This analysis combines real-time data aggregation from manually selected global sources with advanced AI synthesis, engineered to provide neutral and data-driven insights.