Green power is hot again, Stonepeak circles AM Green for mega deal

Core Insights - Stonepeak is pursuing a stake of up to 15% in AM Green, valued at approximately $1.4 billion, marking a significant move in India's green energy sector [1][2] - The deal is expected to conclude within a month and will help AM Green repay $650 million in private credit while funding various projects [2] - Mitsui & Co. is also exploring a stake in AM Green, indicating strong interest from multiple investors in the company [3] Investment Details - AM Green plans to utilize part of the investment to repay a $650 million loan taken to acquire a 17.5% stake in Greenko Energy Holdings, which was valued at $7.5 billion [2] - The remaining funds will support AM Green's $20 billion capital expenditure strategy, focusing on bio-fuel, aluminium, and ammonia projects [2][6] - AM Green is constructing a 1 million tonnes per annum primary aluminium smelter and expanding its alumina refining and mining operations [6] Strategic Collaborations - AM Green has signed a memorandum of understanding with Mitsui for strategic collaboration on energy transition initiatives [3] - The company is also partnering with global logistics major DP World to enhance logistics and storage for green hydrogen and ammonia exports [11] Production Plans - AM Green aims to produce 5 million tonnes per annum of green ammonia, with the first project expected to be operational by 2026 [12] - The company has secured offtake agreements with major buyers, including Uniper, Yara, and Keppel, for its green ammonia production [12] Market Context - The investment landscape in India's green energy sector remains robust, with significant investments and projects underway despite challenges such as costly coal power agreements [14] - India's renewable energy sector has seen a dramatic increase in investment, totaling over $4.66 billion in the last quarter of the previous year, reflecting a 91.5% year-on-year growth [15]