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Amplus Founder And I Squared Capital Join Forces For $500 Million Climate Solutions Venture

By Outlook Planet Desk October 31, 2023

Hexa climate solutions to drive renewable energy, water, and carbon offsets in India

Amplus Founder And I Squared Capital Join Forces For $500 Million Climate Solutions Venture
I Squared Capital had previously invested $150 million in Amplus Energy Solutions Pvt. Ltd. in 2015, thus making its first foray into India's green economy. Shutterstock
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Amplus founder Sanjeev Aggarwal and New York-based private equity fund I Squared Capital have united again to launch Hexa Climate Solutions, a platform that aims to transform India's renewable energy landscape. With a significant investment commitment of $500 million, this venture marks a significant step towards India's green energy transition, making it a pioneering move for the country's green economy.

I Squared Capital had previously invested $150 million in Amplus Energy Solutions Pvt. Ltd. in 2015, thus making its first foray into India's green economy. Their second collaboration in this sector is with Hexa Climate Solutions.

In 2015, I Squared Capital invested $150 million in Amplus Energy Solutions Pvt. Ltd. This was their first venture into India's green economy. They later sold Amplus Energy Solutions to Petroliam Nasional Bhd (Petronas), a state-run oil and gas firm in Malaysia, for ₹2,700 crore in April 2019. I Squared Capital's second project in this sector is with Hexa Climate Solutions.

This partnership, led by I Squared Capital's expertise, offers continuous renewable energy, advanced storage, and investment in carbon offset projects in the commercial and industrial (C&I) sector.

This ambitious venture comes amidst a flurry of green energy deals in India, including Shell Plc's exploration of selling a stake in the operational assets of Spring Energy. Other players such as Gentari Sdn Bhd, Edelweiss Infrastructure Yield Plus Fund's Sekura Energy Ltd, and Actis are also vying to acquire 350 megawatts (MW) of solar projects from European alternative asset manager EQT and Temasek-promoted O2 Power.

Furthermore, the race to harness India's green energy potential sees State-run Oil and Natural Gas Corp. Ltd., Gentari, Edelweiss, and Actis competing to purchase 185 MW solar projects from Finnish state-run power utility Fortum Oyj. India's National Investment and Infrastructure Fund Ltd. and Actis are among the four contenders eyeing Macquarie Asset Management's Green Investment Group platform, Vibrant Energy.

This surge of activity underscores India's growing clout in the global renewable energy landscape. As of July, India Invest, the national investment promotion and facilitation agency, hailed India as an "ideal location" for renewable energy investments, with over $78 billion invested in the Indian renewable energy sector since 2014. Renewable energy projects worth $197 billion of assets are underway in India.

India is on an ambitious path to meet 50% of its energy requirements from renewable assets by 2030 and to increase non-fossil fuel power generation capacity to 500 GW by the end of this decade. Currently, India boasts an installed renewable capacity of 172 GW, with an additional 128 GW under implementation or in the pipeline.

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