Canadian investment firm Brookfield will invest $600 million (about Rs 5,760 crore) in ACME Cleantech Ventures to fund the development and construction of ACME Group’s pipeline of green molecule projects in India and West Asia.
ACME Cleantech Ventures is a UK-based privately held entity within the ACME Group. Brookfield is making the investment through its Brookfield Global Transition Fund.
The transaction will be structured as an equity deal, with the valuation and stake to be sold expected to be finalised by the end of this year, Manoj Upadhyay, chairman of ACME Group, told FE.
ACME normally holds a significant majority in all its projects and business entities, Upadhyay said.
ACME Group will deploy the capital towards the development of four projects — Phase 2 of its Oman project, two green ammonia projects being set up in Odisha, and a green methanol project in Odisha. Phase 1 of the Oman green ammonia project is fully funded, the chairman said.
Brookfield has made several investments in India’s renewable energy sector and has a portfolio of nearly 50 GW of wind and solar assets across operating projects and its development pipeline.
Earlier this year, Brookfield launched Lumara, a renewable energy platform in India deploying $600 million across solar, wind, and battery storage projects. In 2023, Brookfield invested $1 billion in the Avaada Group through its Global Transition Fund. Brookfield has invested more than $32 billion in India across energy, infrastructure, real estate and private equity.
Nawal Saini, managing partner and head of energy, South Asia and the Middle East, Brookfield, said, “Brookfield’s entry into the green molecules sector in the region combines our global scale and institutional capital with ACME’s operating capabilities. ACME has an attractive project pipeline to capture the growing energy transition opportunity in India and West Asia.”
Manoj Upadhyay, chairman of ACME Group, said, “As we develop our world-class green ammonia and other green molecules projects, we aim to accelerate cost-competitive decarbonisation and build a global platform serving customers in Asia, Europe and beyond. Our strong project portfolio, underpinned by long-term, bankable offtake contracts with blue-chip counterparties in India and globally creates a solid foundation for generating largescale sustainable cash flows over the long term.”