BP to Invest $70 Million in Indian Green Energy Fund
July 07 2020 - 11:33AM
Dow Jones News
By Adriano Marchese
U.K. oil major BP PLC said Tuesday that it intends to invest $70
million in a fund focused on identifying, investing and supporting
growth in greener energy solutions in India.
The fund is the Green Growth Equity Fund, established in 2018
with the aim of investing in zero-carbon and low-carbon energy
solutions in India--one of the largest contributing countries to
CO2 emissions, behind only China and the U.S.
The investment grants BP a limited partnership in the fund,
which will include representation on the advisory committee as well
as the rights to co-invest in projects alongside the GGEF.
Among the fund's investors are the government of India through
its National Investment and Infrastructure fund, as well as the
U.K. government by way of the Department for International
Development.
The fund expects to garner around $700 million in commitments,
and to grow further through leveraged capital options, BP said.
"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,"
Executive Vice President for Gas and Low Carbon Energy Dev Sanyal
said.
The strategy to invest in the fund is part of a larger ambition
announced by BP earlier in the year to become a net-zero company by
2050 or sooner. The ambition includes initiatives to increase the
proportion in which it invests in non-traditional oil and gas
businesses.
The GGEF, based in Mumbai, India, is managed by EverSource
Capital, which is a joint venture endeavor between Lightsource BP
and Everstone Capital. The fund has invested in businesses Ayana
Renewable Power, Radiance Renewables, GreenCell Mobility and
EverEnviro, the company said.
Write to Adriano Marchese at adriano.marchese@wsj.com
(END) Dow Jones Newswires
July 07, 2020 11:18 ET (15:18 GMT)
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