Hexa Climate Solutions Pvt. Ltd, a I Squared Capital portfolio company, has acquired the renewable energy development portfolio of Finland-based Fortum in India.
Under the terms of the transaction, Hexa Climate Solutions has acquired a 100% stake in Fortum India Pvt. Ltd (FIPL), including its 40-member team, its 206MW commercial and industrial (C&I) renewable energy portfolio and approximately 600MW of ready-to-build renewable projects.
Hexa Climate Solutions, backed by I Squared Capital, plans to invest approximately $500 million to scale its renewable energy, water, and carbon platforms in India and other emerging markets, said a statement from Hexa.
It said that the transaction is in line with Fortum’s strategy announced in 2024, when the company divested its ownership in the 185MW Indian solar portfolio to limit its exposure in the country and evaluate alternatives for an exit from the Indian market. Fortum’s core operations and main geographical focus are in the Nordics.
“The acquisition of Fortum India marks a significant step in Hexa Climate Solutions’ mission to accelerate the clean energy transition across emerging markets. With this acquisition, Hexa Climate reinforces its strong 2.5 GW development pipeline and strengthens its position as a leading climate-focused platform,” said Sanjeev Aggarwal, founder and executive chairman, Hexa Climate Solutions.
Noting that India has been an important part of Fortum’s international journey, Peter Strannegård, executive vice president, renewables and decarbonisation at Fortum, said: “We are pleased that the Fortum India team and platform have found a new home with Hexa Climate Solutions, a committed renewable energy player.”
On 25 April, Mint reported that Finland’s state-run energy utility Fortum Oyj is exiting India’s renewable energy market by selling its platform FIPL to New York-based I Squared Capital-backed Hexa Climate Solutions.
There were five bidders in the sales process run by EY, including Japan’s Marubeni Corp., Dutch pension fund APG, and infrastructure fund manager AP Moller Capital. A total of 10 companies including steel and mining major ArcelorMittal had signed non-disclosure agreements (NDA) for the transaction termed as project Samsara.
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