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 email@example.com