Keppel-led consortium to acquire 51% stake in Cleantech Solar

Keppel Corporation, Keppel Asia Infrastructure Fund (KAIF) and a co-investor of KAIF, through Cloud Alpha are acquiring a stake of 51% in Cleantech Solar, a Singapore-based solar energy platform, for up to $150 million.

The remaining 49% stake in Cleantech Solar is held by its existing shareholder, Shell Eastern Petroleum (Pte) Ltd.

Cleantech Solar is focused on the commercial and industrial (C&I) segment. It provides renewable energy solutions to corporations in India and Southeast Asia

The company has a total capacity of more than 600MW across the multiple stages of operations, construction, and development.

The assets of Cleantech Solar are located in India and six other countries in Southeast Asia, which include Thailand, Indonesia, Malaysia, Singapore, Cambodia, and Vietnam.

Additionally, the solar energy platform is aiming to reach a total generation capacity of 3GW during the next five years.

Keppel-led consortium to acquire 51% stake in Cleantech Solar. Photo courtesy of Cleantech Energy Corporation Pte Ltd.

Raju Shukla — Founder and CEO of Cleantech Solar said: “It is indeed a matter of great pride that we now have the backing from Keppel Corporation and Shell – two world leading corporations with long term commitment to renewable energy, sustainability, and Net Zero emissions. Cleantech is targeting to achieve a cumulative generation capacity of 3 GW within five years.”

According to Keppel, the investment in Cleantech Solar is the first renewable energy investment for Keppel Asia Infrastructure Fund and will form its beachhead into the solar energy sector in the Asia Pacific.

The fund, along with its co-investment vehicles, also holds a 30% stake in the Gimi floating liquefied natural gas (FLNG) facility, which is presently going through conversion at Keppel Offshore & Marine.

Loh Chin Hua — CEO of Keppel Corporation said: “The investment in Cleantech reflects Keppel’s commitment to sustainability and our Vision 2030 plans to grow our renewables business. It allows us to not only tap the expertise and experience of Cleantech in solar energy projects, but also explore opportunities for collaboration with other parts of the Keppel Group.

“Through acquiring a majority stake in an established platform together with KAIF and a like-minded investor, we would be able to accelerate Keppel’s growth in the renewables space, as we work towards achieving and surpassing our target of 7GW of renewable energy assets by 2030.”

The closing of the deal, which is subject to regulatory and other approvals and certain other customary conditions, is anticipated to close in Q1 2022.