DIF is understood to be close to finalising an equity investment in the new 35MW Kwinana energy-from-waste (EfW) plant owned by developer Phoenix Energy.
Adviser and co-sponsor on the asset, Macquarie Capital, has been seeking a buyer for some time for the project, which looks like being the first household EfW project to reach financial close in Australia.
Two sources with knowledge of the matter confirmed DIF as the buyer.
The original construction cost was said to be AUD 400m (USD 290m).
It is understood the total equity required to build the project is now AUD 265m. Another source close to the lenders said the debt on the project will be about AUD 400m and be provided by government green bank Clean Energy Finance Corporation, IFM Investors, Investec, Metrics Credit, Siemens and Sumitomo Mitsui Banking Corporation.
It is understood the Australian Renewable Energy Agency will also provide some grant funding to the project.
The most recent timing had construction slated for a start in August with a completion period of about three years.
The Kwinana plant will take about 400,000 tonnes of waste annually from eight Perth councils and burn it to supply power to the local grid.
The plant has been in development for almost a decade and most of its advisers and financial backers have been replaced.
Late last year, Macquarie Capital replaced EY as adviser and co-sponsor. Acciona and Veolia were hired to build it and a Singapore-based supplier, Keppel Seghers, drafted as technology supplier.
DIF declined to comment. Phoenix Energy and Macquarie Capital have been called for comment.