Masdar acquires ‘major’ stake in Hero Future Energies

Firm is a third-generation entrepreneurial company and part of the Munjal family’s Hero Group, which includes Hero MotoCorp

Masdar has acquired a major stake in Hero Future Energies (HFE), an India-based clean energy firm. The strategic investment will enable HFE to further expand in India and other key growth markets.

HFE’s existing operations are said to be centered in India predominantly, however the company says that it hopes that as much as 25% of its growth will come from new international markets such as Europe and the UK, and Asia, including Bangladesh, Singapore, Vietnam, Philippines and Indonesia.

According to a statement, the deal is the second investment into the HFE portfolio, following an initial $125m investment made by International Finance Corporation (IFC) in 2017.

“Hero Future Energies and Masdar are ideal long-term strategic partners. We have clear alignment in our core ambitions. We are committed to advancing the development, commercialisation and deployment of cutting-edge renewable power solutions. We are delighted that the renewable energy arm of Mubadala has decided to invest in the renewable energy arm of the Hero Group to support HFE’s global expansion plan and our aspiration to be a premier global clean-tech company providing solutions to the enormous challenges posed by climate change,” says HFE chairman and MD Rahul Munjal.

HFE was established in 2012 as a strategic decision by the Hero Group to enter the high growth market of power generation from clean and renewable sources of energy, the statement said.

Masdar says that it has a history of successful private sector partnerships, having delivered renewable energy projects in more than 25 countries since 2006, representing a combined investment of around $13.5bn.

CEO Mohamed Jameel Al Ramahi added, “At Masdar, through our strategic investment in Hero Future Energies, we are proud to associate our name with one of India’s most iconic brands and to support its further expansion, both in India’s burgeoning renewable energy sector and new geographies. As a global renewable energy leader active in more than 25 countries, and with HFE’s standing as one of India’s leading independent power producers specialising in onshore wind energy, PV power plants and rooftop solar, we see numerous opportunities to collaborate in growing our market presence and diversifying our portfolio in terms of clean technologies. Our partnership with HFE heralds a new phase of growth for both our companies.”

The Indian group’s current portfolio includes 1.3GW of wind and solar power, with 1.5GW under construction or planned. The company is said to have a 2022 growth target of 5GW of installed and operating capacity. Along traditional renewable projects of solar and wind, HFE says it looks to deliver futuristic renewable energy projects utilising new technologies including battery storage and floating solar.

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