Oil and gas giant BP has announced it will invest $70 million in the UK-India Green Growth Equity Fund (GGEF) this year. The cash will support India’s renewables sector as the fund is focused on growth in low-carbon energy solutions.
The Green Growth Fund is financed by the Indian and U.K. governments through the National Investment and Infrastructure Fund and the Department for International Development, respectively, although the latter organization is due to be folded into the U.K. Foreign and Commonwealth Office from September.
The commitment from BP will secure limited partnership status for the oil and gas company, which will invest in low-carbon projects and have representation on the fund’s advisory committee.
Dev Sanyal, BP group executive VP 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. Our investment in the GGEF is aligned with our strategy of investing in integrated low-carbon energy using innovative partnerships and business models.”
BP this year stated an ambition to become a net zero company by 2050 and aims to increase the proportion of its investment into non-oil-and-gas businesses.
Sashi Mukundan, president of BP India and senior VP of BP group, said: “Our investment in the GGEF will aim to rapidly scale up commercially viable low-carbon solutions. The portfolio and scale of investments made by the 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 fund is managed by the EverSource Capital joint venture formed by Singaporean private equity fund Everstone Capital and U.K.-based solar developer Lightsource BP, in which BP is a stakeholder. The Green Growth Fund has invested in businesses including U.K. development bank-funded Ayana Renewable Power and Indian companies Radiance Renewables, GreenCell Mobility and EverEnviro.
Dhanpal Jhaveri, chief executive 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. As we work towards accomplishing the climate goals 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.”