Global investment firm KKR and Hero Group have partnered to invest $450m (€436m) in renewables.

The two companies have agreed to invest in Hero Future Energies (HFE), Hero Group’s renewable energy arm, to help HFE expand its renewable energy capacity and capabilities across technologies such as solar, wind, battery storage, and green hydrogen, and into new markets over time.

Founded in 2012, HFE is a leading independent power producer in India with a diversified portfolio of 1.6GW of operating solar and wind projects. The company is present across multiple states in India, Bangladesh, Vietnam, Singapore, Ukraine and the UK.

KKR said it is making the investment on behalf of its Asia Pacific Infrastructure Fund.

Hardik Shah, partner at KKR, said: “Hero Future Energies is a pioneer in India’s renewables sector, and has a strong track record of delivering innovative clean energy solutions to support India’s renewable energy ambitions. HFE’s clean energy solutions play an important role in helping companies decarbonise as energy demands continue to grow.

“We look forward to working closely with HFE’s management team and existing investors, including the Hero Group and IFC, to help HFE achieve its next phase of growth and contribute to the energy transition efforts in India and globally.”

Rahul Munjal, chairman and managing director of Hero Future Energies, said: “I am happy to welcome KKR as a strategic partner in our company to achieve our goal of expanding renewable energy capacity across multiple geographies by 2025.

“With this investment, Hero Future Energies will work to accelerate India’s energy transition and contribute to the Indian government’s target of generating half the country’s power from non-fossil fuel sources by 2030.”

Srivatsan Iyer, global CEO of Hero Future Energies, said: “KKR’s investment will drive Hero Future Energies’ growth in the rapidly growing renewable energy markets domestically and globally, as well as in new technologies such as battery storage, solar-wind hybrid projects, round-the-clock power, and green hydrogen, among others.”

Isabel Chatterton, Asia Pacific regional head of infrastructure at IFC, said: “IFC is pleased to welcome KKR as a strategic partner on our longstanding investment in Hero Future Energies.

“This investment will enhance the company’s growth plans both in India and globally, meeting surging energy demands and mitigating against climate impacts with reliable and affordable clean energy solutions.”

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