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The Danish Investment Fund for Developing Countries (IFU) is investing USD 34 million in CleanMax, a leading renewable energy company in the commercial and industrial (C&I) segment in Asia, having built an aggregated capacity of 750+ MW of installed solar and wind-solar hybrid power.
India is the third largest consumer of electricity in the world. Today, 60 per cent of the country’s consumption is based on fossil fuel, especially coal. By investing USD 34m in CleanMax, IFU will contribute to the green transition and make it easier for Indian companies to reduce their carbon footprint.
“The investment in CleanMax is in line with our ambition to support the green transition in developing countries and emerging markets. Going forward, our financing will contribute to further reduce the carbon footprint from Indian companies and assist India in reaching its target of 450 gigawatts of renewable energy by 2030,” said Torben Huss, CEO, IFU.
CleanMax, founded in 2011, acts as sustainability partner to leading corporates in Asia, by developing solar and wind projects under the Build Own Operate model by providing renewable electricity under long-term agreements, creating significant savings for end-users. The company currently serves over 150 customers, including Facebook, Adobe, Cargill Foods, Volvo, Tata Group, Mahindra Group, Grasim, MG Motors and others.
CleanMax will use this investment to accelerate its rapid growth in the C&I renewable energy space in India, as well as in the Middle East and in South East Asia. In India, the company has new investments lined up in solar, wind and wind-solar hybrid projects in many Indian states, including Karnataka, Gujarat, Maharashtra; Haryana, UP and Tamil Nadu, to serve the needs of corporate customers.
CleanMax has a promising growth potential, and the ambition is to install an additional capacity of around 2 gigawatt of renewable energy in the next three years.
The investment in CleanMax is IFU’s second within renewables in India, following the signing of the India-Danish Green Strategic Partnership in 2020 by India’s prime minister Narendra Modi and the Danish prime minister Mette Frederiksen.
“We are very pleased to be able to support the India-Danish Green Strategic Partnership through this investment in Cleanmax. We stand ready to continue our efforts within renewables and other green investments in India,” said Deepa Hingorani, Vice President, North and South Asia, IFU.
IFU’s investment is made on behalf of the Danish SDG Investment Fund, which is backed by the Danish state, large Danish pension funds and private investors. Moreover, IFU is investing in CleanMax alongside Augment Infrastructure, following Augment’s investment into the company earlier this year. Augment is a growth infrastructure investor with primary focus on emerging markets across sectors such as power, water and sanitation, telecom infrastructure and transport. IFU’s partnership with Augment offers a combination of skills, network and experience that should accelerate CleanMax’s successful journey forward.
Kuldeep Jain, Founder and Managing Director, CleanMax said “CleanMax is happy to welcome Denmark’s IFU to its equity base; along with the Government of the United Kingdom’s UK Climate Investments (UKCI) and Augment Infrastructure. This equity will help us to further expand our wind- solar hybrid offerings and accelerate our operating capacity from 750+ MW to around 2500 MW in the next 3 years. In an era where the effects of climate change are being felt around the globe, I’m confident that we will together continue to grow CleanMax as the most trusted sustainability partner for corporates in Asia.”