Fortum exits India’s renewable energy market

Fortum Oyj has exited India’s renewable energy market by selling its platform, Fortum India Pvt Ltd (FIPL), to New York-based Hexa Climate Solutions, backed by I Squared Capital. Hexa acquired 100% of FIPL, including its management company, carbon credits, and a 40-member team.

The sale process, managed by EY, attracted five bidders, including Japan’s Marubeni Corp, Dutch pension fund APG, and infrastructure fund AP Moller Capital. FIPL’s portfolio includes a 206 MW solar-wind hybrid project and 600 MW of ready-to-build projects.

Fortum’s exit follows financial setbacks from the war in Ukraine, which disrupted gas supplies and led to significant losses at its majority-owned company Uniper. The company also lost its Russian assets, valued at five billion Euros. These challenges prompted Fortum to refocus on the Nordic market and reduce its presence in other regions, including India.

As part of its exit, Fortum is also looking to sell a majority stake in its electric vehicle charging network, GLIDA, which operates 850 charging points.