Equity Investment in Renewable Energy Projects in India
Supporting Overseas Business Expansion of Japanese Company

• Region: Asia
• Infrastructures
• Environment
• Equity Investment

1. The Japan Bank for International Cooperation (JBIC; Governor: HAYASHI Nobumitsu) signed on March 7 a shareholders' agreement for a joint investment with Osaka Gas Co., Ltd. (Osaka Gas)^*1 in a portfolio of renewable energy projects implemented by Clean Max Enviro Energy Solutions Private Limited (CleanMax), an Indian company, through Clean Max Osaka Gas Renewable Energy Private Limited (CORE) ^*2in India.
     
2. CleanMax is a leading corporate power purchase agreement^*3 (Corporate PPA) provider in India, which supplies electricity from renewable sources, such as solar, wind, and hybrid power. JBIC, together with Osaka Gas, will make an equity investment in these projects, which are developed and operated by Clean Max based on Corporate PPA, mainly in Karnataka, India.
     
3. Osaka Gas designates India as one of its most important target countries for business development, considering the country’s economic scale and growth potential. The company aims to expand its energy business by combining this renewable energy project with its existing city gas supply projects^*4 in India, contributing to the country's economic growth and decarbonization efforts. Additionally, it plans to explore the possibilities for new energy projects, such as green hydrogen and e-methane^*5 in the future. JBIC’s equity investment in this project is intended to support the overseas expansion of Osaka Gas, thereby contributing toward maintaining and improving the international competitiveness of Japanese industry.
     
4. In the Infrastructure System Overseas Promotion Strategy 2030, approved by the Ministerial Meeting on Strategy relating to Infrastructure Export and Economic Cooperation in December 2024, the government of Japan views social transformations the world is facing, such as green initiatives and decarbonization, as opportunities for growth. It has set goals to address global challenges, including climate change, and foster close collaborations with countries in the Global South. These nations are expected to enhance their presence in the global economy and international society for the long term. The investment is in line with the government policy.
     
5. In India, the economic growth rate is high, and the demand for electric power is expected to grow. The government of India pledged in August 2021 that India will become “energy independent” by 2047, which coincides with the 100th anniversary of independence, and at COP26 in November 2021, it committed to realizing carbon neutrality by 2070. It also aspires to achieve 50% cumulative electric power generation from non-fossil-fuel-based energy resources by 2030 as its Nationally Determined Contribution (NDC), an action plan to address climate change under the Paris Agreement. Under these circumstances, the government is introducing renewable energy and promoting countermeasures against climate change, such as the enhancement of green hydrogen production capacity and the dissemination of energy efficiency technologies. This investment will help realize a decarbonized society in India.
     
6. As Japan's policy-based financial institution, JBIC will continue to provide financial support to assist Japanese companies in expanding their businesses overseas and resolving social issues through their businesses by drawing on its various financial facilities and schemes for structuring projects, including its equity participation function, and performing its risk-assuming function.
     

Note

1. *1 
   Osaka Gas will undertake the business through Osaka Gas Singapore Pte. Ltd.
2. *2 
   The company was established as Clean Max Yamuna Private Limited by Clean Max in December 2024. The company name will be changed to CORE after Osaka Gas and JBIC make their investments.
3. *3 
   A power purchase agreement is an agreement between an electricity producer and an electricity purchaser, under which the electricity producer generates and supplies energy to the electricity purchaser.
4. *4 
   In June 2023, JBIC signed a loan agreement with the State Bank of India. This loan was intended to provide the funds necessary for the development and operation of the city gas distribution network business run by AGP City Gas Private Limited in India, in which Osaka Gas is indirectly investing. See press release on June 30, 2023.
5. *5 
   E-methane is synthetic methane produced from non-fossil energy sources such as green hydrogen.