bp to invest $70 million in India’s Green Growth Equity Fund

New Delhi: bp today announced its intention to invest into the Green Growth Equity Fund (GGEF) 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 $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 coinvest in projects alongside GGEF.

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 $700 million commitment at 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 reimagining energy in India. Our investment in GGEF is aligned with our 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.”

Earlier this year, bp announced its ambition to become a net zero company by 2050 or sooner, and to help the world get to net zero. As part of this ambition, one of its 10 aims is to increase the proportion of investments into non-oil and gas businesses.

Sashi Mukundan, president bp India and senior vice president, bp group, added: “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.”

The 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, CEO, EverSource Capital and Vice Chairman, Everstone Group, said: “Eversource is committed to investing in India’s rapidly scaling green sector and providing renewable energy solutions in the country. As we work towards accomplishing the climate goals Page 2 of 3 and the ambitious renewable energy targets set by the Government of India, bp’s global expertise in the low carbon and zero carbon energy value chain will be an added benefit towards realizing those goals. bp, a global energy major, investing in GGEF is an endorsement of the work done by the EverSource team.”

EverSource has a long-term objective of becoming a leader in green infrastructure and climate change investing in India. Commenting on the announcement, representatives of the two anchor investors added:

“Today’s announcement underlines the importance of private investment in catalysing green growth. I’m delighted that green infrastructure projects in India will now be backed by British industry on top of the anchor investment provided by the British government. This demonstrates our commitment to supporting the clean energy transition and reinforces the shared ambition of the UK and India to build a greener future as we recover from Covid-19”: Sir Philip Barton KCMG OBE, British High Commissioner Designate to India.”

“bp’s investment into GGEF is a confirmation of the solid foundation that the EverSource team has built over the last two years and of the opportunity that India provides as bp implements its carbon neutral strategy. NIIF is pleased to see another example of how well its approach of anchoring technically-capable and well-governed platforms and funds fits with the India investment strategies of top global companies and investors. GGEF will play an important role in India, as investors seek to invest at scale into one of the largest and most attractive clean energy markets in the world.” Sujoy Bose, Managing Director & CEO, National Investment and Infrastructure Fund (NIIF).

GGEF is based in Mumbai (India) and invests in scalable operating companies and platforms across renewable energy, energy efficiency, energy storage, e-mobility, resource conservation and associated value chains.