Monday, February 26, 2024
Monday, February 26, 2024
HomeBusinessFortum chooses winner for solar assets in India

Fortum chooses winner for solar assets in India

Gentari Sdn Bhd, a unit of Malaysia’s state oil and gas company Petronas, has emerged as the winning bidder for Finland’s Fortum Oyj’s Indian solar projects, totaling 185 MW, two people aware of the development said. .

Gentari has been granted exclusivity (for documentation of the sales process led by Kotak Investment Banking) for the deal with an enterprise value of around $200 million.

Mint had earlier reported that Gentari, Oil and Natural Gas Corp. Ltd (ONGC), Singapore’s Sembcorp Industries, Edelweiss Infrastructure Yield Plus Fund’s Sekura Energy and private equity firm Actis Llp were in the fray for the company’s Indian assets. Finnish state energy company. .

These five bidders were shortlisted from 11 non-binding offers (NBOs) that were submitted. “Gentari, Actis, ONGC and Edelweiss had submitted price offers, following which Gentari has been granted exclusivity,” said one of the two people cited above, requesting anonymity.

The deal has generated a lot of interest as power from these projects goes to state-owned Solar Energy Corp. of India Ltd, NTPC Ltd and NTPC Vidyut Vyapar Nigam Ltd.

Fortum India President Sanjay Aggarwal and spokespersons for Actis and Edelweiss declined to comment. Spokespeople for Kotak Investment Banking, Petronas, Gentari, ONGC and Sembcorp did not respond to emailed queries on Monday evening.

Global oil companies such as energy giant Shell Plc, France’s TotalEnergies, Thailand’s PTT Group and Petronas have already established a presence in India’s green energy sector, as the conventional hydrocarbon space undergoes massive disruption. , with an increasing focus on green hydrogen and energy storage.

Petronas created Gentari in June 2022 to accelerate clean energy adoption and build 40 GW renewable energy capacity, supplying 1.2 million tonnes per year of green hydrogen and establishing electric vehicle (EV) charging points across Asia -Pacific, with a focus on Malaysia and India.

Gentari has been actively exploring green energy opportunities in India, a recent example being its plans to invest $1.5 billion in a unit of AM Green, set up by Greenko Group founders Mahesh Kolli and Anil Kumar Chalamalasetty.

Petronas Chairman and CEO Muhammad Taufik visited India during the second edition of India Energy Week held in Goa earlier this month.

India has an installed solar power generation capacity of 73.32 GW and an estimated total solar power potential of 748 GW. The Indian government has set a target of achieving 500 GW of installed capacity from non-fossil fuel sources by 2030.

Given the ambitious scale of India’s green energy transition trajectory, foreign capital has been actively investing in this space. India has received foreign direct equity investments worth $6,137.39 million in the renewable energy sector during the three financial years up to September 30, 2023, according to the Department for Promotion of Industry and Internal Trade.

The green hydrogen sector in India is also gaining momentum and attracting investments: the government last year launched the national green hydrogen mission with an outlay of more than $19,000 crore, including support for electrolyser manufacturing and green hydrogen production.

Several large public sector companies including Indian Oil Corp. Ltd and GAIL Ltd and private sector companies including ACME, ReNew Energy, Larsen & Toubro Ltd, Reliance Industries Ltd and Adani group have announced plans for hydrogen production green.

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