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KKR invests in Hero Future Energies in $450 mn transaction

KKR invests in Hero Future Energies in $450 mn transaction

Hero Future Energies said it will also aim to support companies in their effort to decarbonise and transition towards sustainable energy sources in order to achieve net zero emission goals. 

Hero Future Energies receives $450 mn funding Hero Future Energies receives $450 mn funding

Investment firm KKR and Hero Group have announced that they will invest in the company’s renewable energy arm, Hero Future Energies. The company will receive $450 million that will enable it to expand its renewable energy capacity and capabilities across technologies such as solar, wind, battery storage, and green hydrogen into new markets over the course of time. 

Hero Future Energies will also aim to support companies in their effort to decarbonise and transition towards sustainable energy sources in order to achieve net zero emission goals. 

This round of investment will help accelerate India’s energy transition, and advance the nation’s effort to expand renewable energy capacity, and reduce carbon emissions by 1 billion tons by 2030. India aims to achieve net zero emissions by 2070. Private sector is expected to be a key driver of these targets. 

Rahul Munjal, Chairman & Managing Director of Hero Future Energies, said, “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.”

Founded in 2012, Hero Future Energies is an independent power producer in India with a portfolio of solar and wind projects.

Srivatsan Iyer, Global CEO of Hero Future Energies said that 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. 

KKR Partner Hardik Shah called Hero Future Energies a pioneer in India’s renewable sector,and that it will play an important role in helping companies decarbonise as energy demands continue to grow. 

Isabel Chatterton, Asia Pacific Regional Head of Infrastructure at IFC said that the investment will enhance the company’s growth plan both in India and globally. 

Since 2011, KKR has deployed over $15 billion in equity globally to invest in renewable assets, such as solar and wind, which have an operational power generation capacity of 23 GW, as of December 31, 2021.

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