Japan’s Orix to sell stake in Greenko to AM Green

Japan’s Orix Corp. will sell 17.5% of its 20% holding in Greenko Energy Holdings, an Indian renewable energy developer, to a new company formed by Greenko’s founders for $1.4 billion, the company said.

The deal gives the founders and their platform, AM Green, a stronger hold over the Indian clean energy firm.

Tokyo-based Orix will transfer the 17.5% stake to AM Green Power BV, a subsidiary of AM Green BV. The move reduces Orix’s total stake in Greenko from 20% to a smaller holding. After the deal, AM Green and its promoters will own about 25% of Greenko. The transaction is expected to close this month.

Orix will also invest about $731 million in a convertible note issued by AM Green (Luxembourg), the parent company of AM Green BV.

“This investment will provide Orix long-term exposure to green hydrogen, ammonia, SAF and other next-gen molecules, aligning with its capital recycling strategy,” the company said.

Orix will receive $650 million in cash and $750 million in stock through the deal. This will give Orix a 10% stake in AM Green via the convertible note.

The remaining 90% of AM Green will be held by Greenko’s co-founders Anil Chalamalasetty and Mahesh Kolli. To support the transaction, a $650 million private credit loan was raised.

AM Green, which was launched in 2023 by Chalamalasetty and Kolli, is developing a large Power-to-X platform aimed at industrial decarbonization.

Its projects include renewable power, long-duration energy storage, and the production of green molecules such as hydrogen, ammonia, sustainable aviation fuel, ethanol, and low-carbon caustic soda.

Greenko is working to build 10 gigawatts of renewable energy and 100 gigawatt hours of storage capacity by 2030.

Its flagship project, a 1.7-gigawatt pumped storage facility in Andhra Pradesh, has been commissioned.

Two more storage projects in Madhya Pradesh and Karnataka, totaling 2.5 gigawatts, are expected to go live in 2026 and 2027.

The platform also plans to produce 5 million tons of green ammonia and 1 million tons of green hydrogen annually.

The first 1 million-ton ammonia facility is under construction in Kakinada, Andhra Pradesh. The site will also house a 2-gigawatt electrolyzer factory and units for other green chemical production.

Orix had initially agreed to sell its full Greenko stake in January, but the deal fell through in April following disagreements with funding partners. Monday’s agreement marks a renewed deal with revised terms.

Greenko said it is building what it calls the world’s largest “Intelligent Energy Storage Cloud Platform” to support long-term clean energy storage needs.