AM Green to Acquire Orix's 17.5% Stake in Greenko for $1.28 Billion, Driving Green Hydrogen Initiatives

New Delhi, June 30: In a move set to further shape India’s green energy landscape, AM Green BV, a venture owned by Greenko founders Anil Chalamalasetty and Mahesh Kolli, will acquire a 17.5% equity stake in Greenko Energy Holdings from Japan’s Orix Corporation for approximately USD 1.28 billion.

Following the completion of this transaction, AM Green (AMG) will increase its holding in Greenko to approximately 25%. Singapore’s sovereign wealth fund GIC Pte will remain Greenko’s largest shareholder with a dominant 58% stake, while Abu Dhabi Investment Authority (ADIA) holds 14%.

The deal involves Orix transferring 17.5% of its total 20% holding in Greenko to AM Green Power BV, a subsidiary of AM Green BV. Additionally, Orix is set to invest around USD 731 million in convertible notes issued by AM Green (Luxembourg) Sarl (AMG Lux). This concurrent investment underscores Orix’s strategic interest in the burgeoning sector of next-generation green fuels.

Capital Shift to Green Hydrogen and Ammonia

Orix, which initially invested in Greenko in March 2021, views this transaction as part of its broader capital recycling strategy. By shifting its investment towards AMG Lux, Orix aims to secure long-term exposure to the rapidly growing market for green hydrogen, green ammonia, sustainable aviation fuel (SAF), and other advanced molecules crucial for global decarbonization efforts.

“This transaction is a key milestone in building one of the world’s fully integrated and scalable green energy platforms,” said Anil Chalamalasetty, CEO of AM Green.

Deal Reinstated After Initial Termination

This current agreement reinstates an earlier share transfer deal that was initially announced in January 2025 but subsequently terminated in April due to unmet conditions, reportedly related to financing arrangements with funding partners. However, following renewed discussions and a mutual understanding, the parties have re-entered the agreement. The transaction is subject to necessary regulatory approvals, including the Competition Commission of India (CCI), which has already approved the acquisition, and is anticipated to conclude by the end of July 2025.

AM Green’s Green Energy Ambitions

AM Green has outlined aggressive expansion plans aimed at establishing a significant presence in the green molecules sector. Its targets include the production of 5 million tonnes per annum (MTPA) of green ammonia by 2030. The first phase of this ambitious plan, a 1 MTPA green ammonia project in Kakinada, Andhra Pradesh, is currently under construction and is slated for commissioning in the second half of 2026. This facility will incorporate 1.3 GW of electrolysers for green hydrogen production.

The company has already secured supply agreements, signing binding term sheets with international players like Uniper SE and Yara Clean Ammonia, for the delivery of green ammonia to European markets. Future developments include plans for 1 MTPA of green hydrogen production, as well as synthetic fuels such as methanol and SAF derived from biomass.

The Kakinada industrial complex is envisioned as a pioneering and substantial integrated green industrial zone globally. It is designed to house 2 MTPA of green ammonia production capacity, a 2 GW electrolyser gigafactory, and units for SAF and green chemical production, emphasising an integrated approach to green molecule manufacturing.

Greenko’s Renewable Portfolio and Pumped Storage Projects

Greenko, the entity in which AM Green is acquiring a stake, operates a diverse portfolio of renewable power projects, spanning solar, wind, and hydro technologies, with a total installed capacity of 10 GW. Greenko is also at the forefront of developing large-scale pumped storage initiatives, which are crucial for maintaining grid stability and ensuring a round-the-clock renewable energy supply.

A 1.7 GW pumped storage plant in Andhra Pradesh has already been commissioned, demonstrating its capabilities in energy storage. Additional pumped storage projects with a combined capacity of 2.5 GW are underway in Madhya Pradesh and Karnataka, with scheduled completions by 2026 and 2027, respectively. The company also aims to build over 100 GWh of daily storage capacity by 2030 through its “Intelligent Energy Storage Cloud Platform.”

Financial Impact for Orix

Orix anticipates recording a significant gain of approximately 93.4 billion Japanese Yen from this transaction. These gains factor in the valuation of the retained 2.5 per cent stake in Greenko. Based on an exchange rate of USD 1 = 144.58 Yen as of June 27, 2025, this gain is expected to be reflected in Orix’s Q2 FY26 consolidated financial statements.

What’s in the Future?

The AM Green–Orix deal boosts AM Green’s stake in Greenko to 25%, strengthening its push into green hydrogen, ammonia, and SAF. The $1.28 billion transaction supports AM Green’s plan to produce 5 MTPA of green ammonia by 2030, starting with the Kakinada plant. Greenko, with 10 GW renewable capacity and large pumped storage projects, complements this strategy. Regulatory approvals are in place, and deal completion is expected by July 2025.

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