A Keppel consortium has agreed to buy a 51% stake in commercial and industrial solar energy platform Cleantech Renewable Assets for up to $150m.

The consortium includes Keppel Asia Infrastructure Fund (KAIF) and its co-investor. KAIF is managed by Keppel Capital Alternative Asset.

Shell Eastern Petroleum will retain the remaining 49% stake in Cleantech, and will continue to support the future growth of the business in the region.

The transaction is expected to complete in the first quarter of 2022, subject to receipt of the required regulatory approvals.

Keppel Corporation CEO Loh Chin Hua said: “The investment in Cleantech reflects Keppel’s commitment to sustainability and our Vision 2030 plans to grow our renewables business.

“It allows us to not only tap the expertise and experience of Cleantech in solar energy projects, but also explore opportunities for collaboration with other parts of the Keppel Group.

“Through acquiring a majority stake in an established platform together with KAIF and a like-minded investor, we would be able to accelerate Keppel’s growth in the renewables space.”

Singapore-based Cleantech has a total capacity of over 600MW currently under operations, construction, and development stages.

It has projects across India and six countries in Southeast Asia, including Thailand, Malaysia, Indonesia, Cambodia, Singapore and Vietnam.

The company is said to be one of the largest open access platforms and second largest rooftop solar energy platform in India.

It has strong in-house capabilities for project development, engineering, procurement, construction, asset management and financing of solar facilities.

Cleantech serves Apollo Tyres, Cargill, Coca Cola, Shell Lubricants, Akzo Nobel, Kerry Ingredients, and Kuehne + Nagel, among others, as its customers.

The company aims to achieve a cumulative generation capacity of 3GW in coming 5 years.

The transaction is not expected to have any material impact on Keppel’s earnings per share and net tangible asset per share for this financial year.