India's ReNew secures $5.30 bil financing from ADB for renewable energy projects

ReNew Energy Global has signed a memorandum of understanding with Asian Development Bank (ADB) for climate change mitigation and adaptation projects worth over $5.30 billion, the renewable energy firm said Dec. 4.

The MOU, signed at the UN Climate Change Conference at Dubai, would apply to projects being worked on from the current year to 2028, ReNew said.

"Significant financing is needed to reach global climate targets and this agreement helps secure the capital needed," Sumant Sinha, chairman and CEO of ReNew, said.

The MOU identified potential investments in renewable energy projects, manufacturing, carbon offset projects, renewable hydrogen, with the aim of jointly supporting sustainable energy transition, it said.

Further details about the projects and locations were not shared.

The MOU "is expected to draw interest from additional international investors to participate in financing long-term debt for significant Renewable Energy infrastructure projects," ReNew said.

"In addition, it will help ADB achieve its funding ambition of $100 billion in green energy projects by 2030."

ReNew has a portfolio of almost 14 GW of clean energy capacity, of which commissioned capacity is at 7.98 GW while the rest is committed project capacity, the company's website showed.

The company has already invested around $8 billion in clean energy and would be looking to raise further funding for renewable energy projects, ReNew said.

ReNew said in November 2022 it had signed a framework agreement with Egypt to set up a renewable hydrogen plant in the Suez Canal Economic Zone with an investment of $8 billion and a targeted 220,000 mt/year of renewable hydrogen production.

In India, ReNew is looking at developing projects for the domestic market, with joint venture partners Indian Oil Corp. and L&T, and is also aiming at developing projects for exports.

Platts, part of S&P Global Commodity Insights, assessed Western Australia hydrogen produced via alkaline electrolysis at $3.43/kg Dec. 1, up 32% on the month.

Japan hydrogen produced via alkaline electrolysis (including capex) was assessed by Platts at $5.92/kg Dec. 4, up 18% from a month ago.