New Delhi, Sept. 17 -- Canadian alternative asset manager Brookfield said on Thursday that it will invest up to $600 million (around Rs 5,760 crore) in ACME Cleantech Ventures, the UK-based entity housing ACME Group's green molecules business, to fund the development and construction of green ammonia and green methanol projects across India and the Middle East.

The commitment is being deployed through the Brookfield Global Transition Fund, the firm's dedicated strategy for investments supporting the transition to a net-zero economy, according to a joint statement from the two companies.

Brookfield did not disclose the equity stake it will hold in ACME Cleantech Ventures, the definitive terms of the transaction, or a timeline for deploying the capital.

"The demand for green molecules continues to grow as companies and governments seek scalable solutions to decarbonize while strengthening energy security," said Nawal Saini, Brookfield's managing partner and head of energy for South Asia and the Middle East. The deal marks Brookfield's entry into the region's low-carbon fuels sector.

ACME Group chairman Manoj Upadhyay said the investment is "a strong endorsement" of the company's development and operating capabilities, pointing to long-term offtake contracts as the basis for "large-scale sustainable cash flows".

ACME Cleantech Solutions was founded in 2003 by Upadhyay and is headquartered in Gurugram.

Existing pipeline and offtake base

ACME's green molecules business operates a green ammonia facility in Bikaner, Rajasthan, and is building a green ammonia project in Duqm, Oman. It is also setting up new capacity in Odisha under a Green Ammonia Purchase Agreement with state-run Solar Energy Corporation of India (SECI), alongside a joint venture with Japan's IHI Corporation for a facility at Gopalpur, in which IHI holds a 30% stake, according to earlier company disclosures.

The company has lined up offtake agreements with Norway's Yara International, IHI Corporation, Mitsubishi Gas Chemicals, SECI, and domestic fertiliser makers, including IFFCO, Paradeep Phosphates, Coromandel International and Indorama India, according to the statement. ACME has separately disclosed winning multiple SECI green ammonia auctions over the past two years, at tariffs ranging around Rs 50-65 per kg.

Brookfield's second India green hydrogen bet

Brookfield has a sizeable presence in India's green hydrogen and ammonia space. In 2023, Brookfield Renewable committed roughly $1 billion to Avaada Group's green hydrogen and ammonia business, also through the Brookfield Global Transition Fund.

The ACME transaction extends the firm's green molecules investment strategy to another major Indian developer. .

Brookfield separately said it holds roughly 50 GW of wind and solar assets in operation and under development in India across its platforms, a figure the firm did not break down further. It manages more than $1 trillion in assets globally across infrastructure, energy, private equity, real estate and credit, and operates in more than 30 countries.

Published by HT Digital Content Services with permission from VC Circle.