A subsidiary of US-based renewable energy firm NextEra Energy Resources has agreed to sell a 50% non-controlling stake in around 2.5GW of renewable capacity in the US to the Ontario Teachers’ Pension Plan Board (Ontario Teachers) for around $849m.

Ontario Teachers is one of the world’s largest pension plans and claims to be a leading infrastructure investor.

The remaining 50% interest in the long-term contracted renewable asset portfolio will be sold to NextEra Energy Partners under an agreement signed in October.

NextEra Energy chairman and CEO Jim Robo said: “This transaction is expected to generate significant value for NextEra Energy shareholders.

“In addition to generating attractive ongoing fee income, the sale of 50% of the portfolio to NextEra Energy Partners and 50% to a high-quality partner like Ontario Teachers’ provides an opportunity to take advantage of the robust demand for high-quality, long-term contracted renewable energy assets and efficiently recycle nearly $3.4bn in total capital that is expected to be redeployed into new renewables growth opportunities.”

NextEra Energy Resources plans to inject the proceeds from the sale into new wind, solar and battery storage growth opportunities, including its renewables and storage backlog, which has more than 18GW of capacity.

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The deal is expected to close later this year or early next year following customary closing conditions and the receipt of approvals from the regulatory authorities.

Ontario Teachers greenfield and renewables managing director Chris Ireland said: “We are excited to make this significant investment and to grow our global portfolio of high-quality renewable energy assets.

“NextEra Energy is one of the world’s leading renewable energy companies and they share our focus on shaping a better future through the development of sustainable energy.

“This investment marks the beginning of what we expect will be a long-term partnership with NextEra Energy.”