The UK-based BP plc on Tuesday said it will invest USD 70 million in the Green Growth Equity Fund (GGEF) that supports the growing renewable energy sector in India.
The fund, established in 2018, is focused on identifying, investing and supporting growth in zero-carbon and low-carbon energy solutions in the country.
“With a commitment of USD 70 million, BP will, upon investment later this year, become a limited partner in GGEF and have representation on its advisory committee, as well as the rights to co-invest in projects alongside GGEF,” the company said in a statement.
GGEF already includes investments from the Government of India, through the National Investment and Infrastructure Fund (NIIF), and the UK government, through the Department for International Development (DFID).
It expects to reach about USD 700 million commitment at the final close and grow further through leveraged capital options.
Dev Sanyal, BP Group’s executive vice-president for gas and low-carbon energy, said: “India is committed to the energy transition and pursuing a range of low-carbon options for the future. BP is equally committed to re-imagining energy in India.”
He said BP’s investment in GGEF was aligned with the group’s strategy of investing in integrated low-carbon energy using innovative partnerships and business models.
“It provides a unique platform for BP to accelerate its ambition in India and to co-invest in a variety of zero- and low-carbon energy solutions in the country,” he said.
Earlier this year, BP announced its ambition to become a net-zero company by 2050 or sooner. As part of this, one of its 10 aims is to increase the proportion of investments into non-oil and gas businesses.
Sashi Mukundan, president of BP India and and senior vice-president of BP Group, said, “Our investment in GGEF will aim to rapidly scale up commercially viable low-carbon solutions.”
“The portfolio and scale of investments made by GGEF — be it in solar power, mobility solutions, or sustainable infrastructure management — is extraordinary. Each one of these will help India achieve its climate goals,” he said.
GGEF is managed by EverSource Capital, a joint venture between Lightsource BP and Everstone Capital, and has invested in businesses like Ayana Renewable Power, Radiance Renewables, GreenCell Mobility, and EverEnviro.
Dhanpal Jhaveri, chief executive officer of EverSource Capital and vice-chairman of Everstone Group, said, “Eversource is committed to investing in India’s rapidly scaling green sector and providing renewable energy solutions in the country.”
EverSource has a long-term objective of becoming a leader in green infrastructure and climate change investing in India.
BP employs around 7,500 people in India. In addition to its gas value chain, announced retail, aviation fuels, and mobility solutions alliance with Reliance Industries Ltd, the company’s activities include Castrol lubricants; oil and gas trading; clean energy projects through Lightsource BP; IT back-office activities and a new global business services centre.
India Gas Solutions Pvt Ltd, a 50:50 joint venture to source and market gas in India, is also part of BP’s gas value chain alliance with RIL.