Green hydrogen to be a focus area: Actis PE

Article Republished By Javier Troconis

Global private equity investor Actis is actively considering investing in the green hydrogen segment in India, said Sanjiv Aggarwal, Sanjiv Aggarwal, Partner, Energy Infrastructure at Actis.

“We are studying the sector very carefully. Its an area which we are very actively considering investing in not only in India, but also in other markets,” said Aggarwal.

Green hydrogen is produced by splitting water into hydrogen and oxygen using electrolyzers. Over the past few months, several Indian companies including Reliance Industries, Renew Power, Indian Oil Corporation, Adani Group, and Greenko Group have announced plans in this segment.

Actis which last month sold its renewable energy platform Sprng Energy to Shell Overseas Investment BV, for Rs 11,900 crore has also incorporated Blupine Energy Pvt Ltd, under which it is targeting $800 million to $1 billion of investments to develop renewable energy projects and store assets. Sprng was Actis Energy 4 fund investment.

“Bluepine is going to be our platform through which we are going to invest approx. a billion dollars in India. While in Sprng we did not have any C&I (commercial and industrial) offtakers, in Bluepine we would,” said Aggarwal, adding that Actis is also looking at new technologies like round the clock power or hybrid. “We will also selectively look at storage options. So, Bluepine’s generation is going to be more technology and demand based. The market is changing and Bluepine will adapt to these markey changes.”

Actis has previously invested $800 million over the last seven years in Indian renewables in platforms such as Ostro Energy and Sprng Energy to build a 3 GW of solar and wind capacity. Actis sold Ostro Energy to Renew Power in 2018.

In October 2021 Actis announced its latest fund, Actis Energy 5, which closed with $6 billion of investable capital towards green energy.

On the current power crisis faced by India, Aggarwal said this current situation is not only in India, but a global phenomenon. It also underlines that there’s a need for us to move quickly to storage. “Once the storage costs are brought down, renewables can function as a baseload capacity. There is work happening on battery technology but the costs are still high. However, I think that, at least for the next four to five years or perhaps even longer, coal will continue to be a very significant part of the energy mix in India.”

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