Acme Group targets $300 mn equity raise for Green Hydrogen Ventures

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Acme Group targets $300 mn equity raise for Green Hydrogen Ventures

Acme Group targets $300 mn equity raise for Green Hydrogen Ventures

Industry News
Jan 18,24

The company, which recently sold 450-550 MW of power assets to BluPine for $180-200 million, is in the initial stages of appointing investment bankers for the equity funding process, conducted discreetly.

Acme Group targets $300 mn equity raise for Green Hydrogen Ventures

Acme Group, a renewable energy firm based in Gurugram, is seeking to secure $300 million in fresh equity to fund its participation in new power projects, according to sources familiar with the matter. The company, which recently sold 450-550 MW of power assets to BluPine for $180-200 million, is in the initial stages of appointing investment bankers for the equity funding process, conducted discreetly. The fundraising effort is expected to target private equity funds, sovereign wealth funds, and infrastructure funds globally, with a focus on establishing long-term partnerships.

The capital infusion, planned at the holding company level, aims to support Acme Group's pursuit of additional projects in line with the green hydrogen initiative. The funds will play a crucial role in enabling the company to bid for projects aligned with the growing demand for green hydrogen, particularly as India seeks to encourage green hydrogen exports to Japan, South Korea, and Europe.

Despite early-stage discussions, the company's spokesperson remained silent on the matter. In a separate development reported in November, Acme Group revealed plans to sell up to 51% of its proposed infrastructure investment trust (InvIT) for approximately $1.3 billion. The firm, focusing on green hydrogen, has engaged EY to facilitate the sale.

India's interest in green hydrogen is evident with the construction of 5.8 million tonnes of green ammonia capacity. To promote green hydrogen and green ammonia, the government has introduced incentives such as concessional green electricity, inter-state transmission charge waivers, and land allocations in renewable energy parks and mega manufacturing zones.

With the National Green Hydrogen Mission targeting 5 million tonnes of annual green hydrogen production by 2030, investments in companies like Acme Group, specialising in the green hydrogen space, are poised to gain momentum. The Acme Group, founded in 2003 by Manoj Kumar Upadhyay, has ambitious global plans, including projects in Oman, India, Egypt, Australia, and Chile. The company has also been selected to set up a green hydrogen plant under the Strategic Interventions for Green Hydrogen Transition (SIGHT) scheme, with an allocated capacity of 90,000 tonnes per annum, eligible for incentives of Rs 30 per kg on average for three years.

Source: Mint