MUMBAI: Royal Dutch Shell Plc has picked up 49% stake in Cleantech Solar, a Southeast Asia and India-focused solar energy systems developer, for $100 million in what could be the British energy giant’s first investment in the alternate energy space in Asia.
The transaction is expected to get concluded in January 2019, the two companies said on Wednesday. Headquartered in Singapore, Cleantech Solar owns and operates more than 120 solar power plants across Southeast Asia, representing over 200 MW capacity, with India accounting for almost three-fourths of its generation capacity.
“We should cross 500 MW in a couple of years’ time and these investments will be used for aggressive expansion,” Raju Shukla, founder of Cleantech, told ET. “The shift to alternative energy and solar is at a faster pace and we expect this trend to continue throughout the region,” he said. Over the last four years, Cleantech Solar has signed over 120 contracts with local and multinational in the region.
ts clients include Coca-Cola, Apollo Tyres, MJ Logistics, Sangam (India) and Kerry Ingredients. “Asia is a significant commercial and industrial solar generation market for Shell and we are proud to work with Cleantech Solar as a leading solar company in the region,” said Marc van Gerven, vice president, solar and storage, at Shell. The deal gives Shell an immediate path to an established commercial and industrial platform in Southeast Asia and India.