TPG Considers $750 Million Investment in Greenko's Green Ammonia Venture

Greenko Group, a prominent player in India's renewable energy sector, is currently engaged in discussions with TPG Rise Climate fund, a private equity investor, to secure a substantial investment of up to $750 million for its green ammonia business, as revealed by sources familiar with the ongoing negotiations.

TPG Rise, known for its active involvement in India's clean energy landscape, has entered into an exclusivity agreement with Greenko, indicating a focused commitment to exploring this investment opportunity. If the discussions proceed successfully, an official announcement of the deal is anticipated in the coming months, according to the sources mentioned.

The Greenko Group, headquartered in Hyderabad, is actively developing India's largest green ammonia facility under the banner of Greenko ZeroC (GZC). Green ammonia, a renewable fuel produced through a process known as hydrogenation, is versatile and can be utilized in existing internal combustion engines. Notably, Germany-based Uniper Group has already forged an agreement with Greenko ZeroC in February to procure green ammonia. In a broader collaboration, Uniper and Greenko aim to extend their partnership to deploy flexible renewable electricity for other hydrogen-related products, including e-methanol and sustainable aviation fuels.

A pivotal project in Greenko's portfolio is the Kakinada project, envisioned as a multi-phase green ammonia production and export facility. By 2027, this project is expected to contribute a substantial 1 million tonnes per annum (mtpa) of green ammonia production capacity. This ambitious initiative aligns with Greenko's commitment to advancing carbon-neutral solutions, contributing to the net-zero goals for corporations and countries. The spokesperson for Greenko Group, however, has refuted the information, citing inaccuracies, without providing further details.

TPG Rise Climate fund's potential investment in Greenko's green ammonia business underscores the fund's strategic interest in sustainable and environmentally friendly ventures. As one of the largest renewable energy companies globally, Greenko Group stands out for its significant contributions to clean energy. With an installed capacity base of 7.3 GW spanning solar, wind, and hydro generation technologies, the company operates across more than 100 projects in 15 states. Annually delivering over 20 billion units of renewable energy, Greenko accounts for approximately 1.5-2 percent of India's total electricity needs.

Greenko's unique focus lies in transforming energy from intermittent sources, such as wind, into reliable, dispatchable, and on-demand energy. This transformation is facilitated through intelligent energy platforms and green hydrogen production systems, underlining the company's commitment to leveraging digitization and long-duration storage to drive sustainable energy solutions.

While the spokesperson for Greenko has dismissed the reports as inaccurate, the potential collaboration with TPG Rise Climate fund underscores the industry's recognition of the pivotal role green ammonia can play in India's renewable energy landscape. As these discussions progress, the partnership between Greenko and TPG Rise Climate fund could mark a significant milestone in advancing sustainable and innovative solutions in the realm of clean energy.