TPG weighs $750 million investment in Greenko’s green ammonia business – EQ
In Short : TPG is considering a substantial investment of $750 million in Greenko’s green ammonia business. This potential investment underscores the growing interest and financial support for sustainable and innovative solutions in the green energy sector, particularly in the production of green ammonia.
In Detail : TPG Rise fund, one of the most active investors in India’s clean energy space, has signed exclusivity pact with Greenko
Greenko group, one of India’s largest renewable energy companies, is in talks with private equity investor TPG Rise Climate fund to raise as much as $750 million in its green ammonia business, said people familiar with the ongoing discussions.
TPG Rise fund, one of the most active investors in India’s clean energy space, has signed an exclusivity pact with Greenko and a deal announcement is likely in the coming months if the talks fructify, according to the persons cited above.
Hyderabad-based Greenko group is building India’s largest green ammonia facility under unit Greenko ZeroC (GZC). Green ammonia is a fuel that can be used in existing internal combustion engines. It’s also renewable and produced using a process called hydrogenation. In February, Germany-based Uniper Group signed an agreement with Greenko ZeroC to source green ammonia. Besides green ammonia, Uniper and Greenko also intend to collaborate on deploying similar flexible renewable electricity to other hydrogen products such as e-methanol and sustainable aviation fuels. Greenko’s Kakinada project is a multi-phase green ammonia production and export facility that will add up to 1 million tonnes per annum (mtpa) of green ammonia production capacity by 2027.
A spokesperson for Greenko group said the information is incorrect, without providing details. A spokesperson for TPG India did not respond to a request for comment.
Greenko Group is the largest energy storage company and among the biggest providers of clean energy worldwide. Its focus is enabling carbon-neutral solutions to achieve net zero goals for corporations and countries through its intelligent energy platforms and green hydrogen production systems. Greenko Group has an installed capacity base of 7.3 GW across solar, wind and hydro generation technologies spread over ~100+ projects across 15 states and delivering 20+ bn units of renewable energy annually that contributes ~1.5-2 percent of India’s total electricity needs. Greenko is committed to transforming energy from intermittent sources such as wind into reliable, dispatchable and on-demand energy controlled by digitization and long-duration storage.
Founded by Anil Chalamalasetty and Mahesh Kolli, Greenko is now majority-owned by global institutional investors, which include the Government of Singapore Investment Corp. (GIC), Abu Dhabi Investment Authority (ADIA) and Orix Corp. (Orix), among others. Launched in early 2021, the TPG Rise Climate fund is led by TPG’s founding partner, Jim Coulter and former US Treasury Secretary Hank Paulson, who serves as Executive Chairman. The fund manages a corpus of $18 billion globally and focuses on five climate sub-sectors: energy transition, green mobility, sustainable fuels, sustainable molecules, and carbon solutions.
Recent investments of the fund in India include a $1 billion funding round of Tata Motors’ electric vehicle business in 2021 and an investment of around $180 million in Tata Technologies Ltd in October.
