Energy major BP Plc has invested $70 million (Rs 524 crore) in a green energy fund managed by EverSource Capital.
The British energy giant will get representation on the advisory board of Green Growth Equity Fund and also get the rights to co-invest in projects alongside the fund, it said in a statement.
“Our investment in GGEF is aligned with our strategy of investing in integrated low carbon energy using innovative partnerships and business models,” said Dev Sanyal, BP’s executive vice president for gas and low carbon energy.
EverSource is a joint venture set up by private equity firm Everstone Capital and UK-based Lightsource BP in 2018.
BP had acquired a stake in UK-based solar developer Lightsource in 2017, which then rebranded as Lightsource BP.
The energy giant is the latest Limited Partner for the green fund. The other LPs of the fund are the British government and the Indian government-backed National Investment and Infrastructure Fund (NIIF). Both institutions infused £120 million each and seeded GGEF with £240 million ($341 million).
VCCircle had reported the Indian government’s plan to bring a third-party manager for the fund in 2017.
The green energy fund is targeting a corpus of $700 million. With the latest investment it would have secured at least $410 million, excluding the general partner contribution from Everstone and Lightsource BP.
The fund’s focus is on reducing carbon emissions and improving energy efficiency across target sectors. It invests in scalable operating companies and platforms spanning renewable energy, energy efficiency, energy storage, e-mobility, resource conservation and associated value chains.
EverSource CEO Dhanpal Jhaveri said BP’s expertise in the low-carbon and zero-carbon energy value chain will help the fund meet its goals.
EverSource has struck two deals in the renewable energy sector so far. In February, EverSource acquired rooftop firm Origin Renewables. In 2019, it joined the NIIF to back an India-focussed renewable energy platform floated by UK-based development finance institution CDC Group Plc.