I Squared has been interviewing advisers ahead of a possible sale of its Australian Octa remote power business, according to two sources.

The US mid-market private equity fund could initiate a sale in the first quarter of 2026, one of the sources added.

I Squared bought Perth-based Octa in 2020 when it was called Clean Energy Fuels Australia.

Octa delivers liquefied natural gas (LNG) and builds, owns and operates renewable remote power for miners, industry and communities in Western Australia.

The sources said Octa would attract interest due to the success of QIC-owned remote power play Pacific Energy, for which owner QIC recently raised AUD 1.97bn in additional equity and debt.

Also, Pacific Equity Partners, OPTrust and Foresight agreed to sell independent power producer Zenith Energy to KKR for AUD 1.7bn (USD 1.1bn) in June.

Rival bidders for that deal included Sweden’s EQT Partners and Dutch infra fund manager manager CVC DIF.

Octa is the sole provider of transportable LNG in Western Australia without dedicated pipelines making it a scalable business, the sources said.

Clean Energy Fuels Australia’s 250 tonne per day LNG plant in Mount Magnet delivers LNG – a cleaner fuel than diesel – via tankers to Westgold Resources, Vault Minerals, Lynas Rare Earths, Pilbara Minerals and Bellevue Gold, according to its website.

Octa owns PWR Hybrid, which builds, owns and operates hybrid power stations for remote energy users with solar PV, wind, batteries, natural gas and LNG.

Its other business, EVOL LNG, which it bought in December 2024, transports LNG via a fleet of 35 tankers and intermodal containers.

Octa in August closed an up to AUD 355m five-year loan with Clifford Capital, NAB and SMBC to expand its trucked LNG, renewables and hybrid power business for remote miners in Western Australia.

I Squared has been “aggressively pursuing” Australian greenfield renewables deals, and plans to launch a new platform, its Global Chief Investment Officer Gautam Bhandari told Infralogic in June.

As well as Octa, it currently owns two other Australian platforms: waste and recycling firm SOILCO and transport equipment lessor Rentco, as reported.

I Squared declined to comment.