Green power is hot again, Stonepeak circles AM Green for mega deal
The proposed share sale in AM Green (Luxembourg) S.à rl is likely to be concluded within a month, the people cited above said on condition of anonymity. AM Green, owned by Greenko Group founders Anil Chalamalasetty and Mahesh Kolli, will use some of the money to repay its $650 million private loan. This amount was borrowed to buy a 17.5% stake in Greenko Energy Holdings from Japan’s financial services company Orix Corp, which gave Hyderabad-based Greenko a deal worth $7.5 billion. The rest of the money will go to biofuel, aluminum and ammonia projects, which form part of AM Green’s $20 billion capital expenditure strategy.
Japan’s Mitsui & Co. is also conducting due diligence to acquire a stake in AM Green at the holding company level and has signed a memorandum of understanding (MoU) with AM Green for strategic cooperation on energy transition initiatives and potential investment avenues.
In a joint statement made by the two companies on December 18, it was said: “Within the scope of the Memorandum of Understanding signed with Mitsui, the parties will evaluate the potential investment in the AM Green Metals value chain.”
“The proposed Stonepeak deal has the same terms as those offered to Mitsui,” said one of the two people cited above.
Mint AM Green was first reported to have received $750 million worth of Orix shares in the Greenko deal in 2025 for $650 million in cash plus 10% through convertible notes. In AM Green, Chalamalasetty and Kolli have 90% balance. The duo also owns a nearly 25% stake in Greenko Energy through their personal shares, as well as shares held by AM Green.
Emailed questions to spokespeople for Stonepeak, Mitsui and Orix on Thursday evening were not immediately answered. Kolli, chairman of AM Green Group and chairman and joint managing director of Greenko Group, declined to comment.
Capital expenditure plans
AM Green’s subsidiary, AM Green Aluminum Metals and Materials, is building 1 million tonnes per annum (mtpa) primary aluminum smelters and 2 mtpa alumina refining and mining operations, against the backdrop of many developed economies imposing carbon taxes on imports and imposing stricter compliance norms.
AM Green is also building production facilities for green molecules, including green hydrogen, green ammonia, biofuels, e-methanol, sustainable aviation fuels and a variety of high-value chemicals for decarbonization in hard-to-abate industries.
Stonepeak is not new to India’s green energy space. It has invested in India’s renewable energy space and was among the shortlisted bidders to submit a binding offer to acquire European alternative asset manager EQT and Singapore’s Temasek-owned O2 Power, a renewable energy platform in India. The equity and operating values of the deal were approximately $1 billion and $2.3 billion, respectively. Stonepeak, which has approximately $80 billion in assets under management, focuses on infrastructure and real assets.
Mint had previously reported that Malaysia’s Gentari Sdn Bhd and Singapore’s GIC Holdings Pte Ltd planned to invest $1.75 billion in AM Green Ammonia, marking one of the largest energy transition deals in the world. Earlier, global mining giant Rio Tinto and AMG Metals & Minerals signed a Memorandum of Understanding to set up the world’s largest renewable energy-powered aluminum plant in India with an investment of around $6 billion.
Additionally, state-run Coal India Ltd signed an MoU to supply 4.5 GW of renewable energy to AM Green’s green ammonia plants. Additionally, AM Green Ammonia BV has partnered with Germany’s RWE Supply & Trading to supply green ammonia. Additionally, AM Green has collaborated with global logistics giant DP World to establish advanced logistics and warehousing infrastructure for the export of green hydrogen and green ammonia.
AM Green also plans to produce 5 million tonnes per annum (mtpa) of green ammonia, with the first 1 mtpa project in Kakinada expected to be commissioned in 2026. The project, which includes a green hydrogen unit and ammonia conversion plant in a redesigned urea plant, acquired in 2024, will cost around Rs 12,500 billion. AM Green has already signed sales agreements with major buyers such as Uniper, Yara and Keppel.
green journey
Mint It had previously reported that AM Green is moving into 2G or second-generation biofuels and plans to invest $1 billion to set up two bioethanol plants in the country. As part of this playbook, AM Green acquired a 50% stake in Assam Bio Refinery Pvt., a joint venture of Finnish state energy utility Fortum Oyj and Chempolis Oy. Ltd as well as Oulu-based biotechnology firm Chempolis Oy.
As Mint previously reported, investor interest in India’s green energy space has continued despite emerging challenges such as power distribution companies signing costly coal-fired power purchase agreements (PPAs) instead of cheaper green energy. Additionally, 43 GW of green energy capacity ₹The proposed investment of 2.1 trillion does not have PPAs and power supply agreements (PSAs) in place. Additionally, green energy production is restricted in Rajasthan and Gujarat, two of India’s largest renewable energy producing states.
The United Nations Environment Program Finance Initiative (UNEP FI) in its November report said India is witnessing significant growth on the energy transition front. India has increased renewable energy by more than three times the increase in electricity demand in 2024, resulting in coal and gas usage falling by 3.1% and 34% respectively, the report said.
“During the same period, 83 percent of India’s energy sector investment went to clean energy. In the last quarter of the same year, the total investment in India’s renewable energy sector exceeded US$ 4.66 billion, indicating a striking annual increase of 91.5 percent,” the report said.
A recent report by the World Economic Forum added that although the race for energy transition and the associated investment scenario has so far been dominated by China, which spends almost as much on clean energy as the US and EU combined and leads production in most clean and advanced energy supply chains, India has also shown great ambition and progress in this race.
