Malaysia’s state-owned oil corporation, Petronas, is on the verge of finalizing a significant deal worth $1.6 billion for a 25 percent stake in the ammonia unit of AM Green, an Indian energy platform, according to a recent report by Bloomberg. This move marks a strategic maneuver by Petronas to reinforce its presence in the burgeoning green energy sector.
Petronas is currently in an advanced stage of negotiations, with AM Green being appraised at a total valuation of $6 billion, underlining the substantial financial commitment involved in the deal.
The negotiations follow earlier reports that Petronas was vying with global competitor BP for an investment ranging between $1.5 billion to $2 billion for a considerable minority stake in AM Green, a venture owned by the co-founders of Greenko, Anil Chalamalasetty and Mahesh Kolli.
The selection of a potential investor by Greenko was keenly anticipated, as the renewable energy sector in India has become a hotspot for global investors, aligning with the country’s ambitious targets in the fight against climate change.
Notably, Total, a prominent French oil giant, recently announced its plans to invest $300 million in a collaborative effort with Adani Green Energy, focusing on solar and wind projects in India.
In line with this growing interest in India’s green energy landscape, Saudi Arabia’s sovereign wealth fund is exploring the possibility of establishing an office within the country. The move comes as the Kingdom of Saudi Arabia expresses its enthusiasm for investments in key sectors, including green energy and petrochemicals.
Prior to this latest development, Petronas had extended an offer of $460 million to acquire a 20 percent stake in the green energy arm of NTPC, India’s largest power producer. However, NTPC opted out of the deal, setting the stage for Petronas to redirect its investments towards AM Green’s ammonia unit, affirming its strategic focus on the renewable energy sector in India.