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Clean tech firm HFE snags $150 mln

London-based Hero Future Energies, a clean tech company, has secured $150 million in funding. The investor was Masdar. The capital will be used to back HFE’s expansion of its renewable energy portfolio.

PRESS RELEASE

London, United Kingdom – 11 November 2019 – Hero Future Energies (“HFE” or the “Company”), the leading clean-tech company, has announced a US$150 million strategic investment to fund the expansion of its renewable energy portfolio, including in selected international geographies.

· US$150 million strategic investment by Abu Dhabi Future Energy Company (“Masdar”), a global leader in renewable energy projects, sustainable real estate, sustainable mobility and waste to energy

· Second strategic investment in HFE since 2017, following initial US$125 million made by International Finance Corporation (“IFC”), part of the World Bank

· Recent relocation of global headquarters to London, a clear vote of confidence in the UK business environment

Clear growth ambitions
The strategic investment of US$150 million by Masdar will help facilitate the further expansion of HFE in India and other key growth markets, including Europe and Asia. Masdar, the renewable energy arm of Mubadala Investment Company, has a history of successful private sector partnerships, having delivered renewable energy projects in more than 25 countries since 2006, representing a combined investment of around US$13.5 billion.

HFE anticipates that as much as 25% of its growth will come from new international markets, including Europe and the UK, and Asia, including Bangladesh, Singapore, Vietnam, Philippines and Indonesia.

New global headquarters in London
The Board of HFE has recently relocated its global headquarters to London from India. This is a clear statement of support for the UK and its ability to attract high growth international companies. The Company views London as retaining its position as the leading centre for international finance and is supportive of the UK’s ambition to become a world leader in the renewable energy sector.

Throughout the UK, including London, there is a depth of talent and a hub for innovation and R&D. The depth of the financial markets and understanding of renewables makes it the optimum location for HFE’s global headquarters.
Entrepreneurial heritage

HFE is a third-generation entrepreneurial company and part of the Munjal family’s Hero Group (the “Group”), which includes Hero MotoCorp the dominant leader in the domestic motorbike industry in India. HFE was established in 2012 as a deliberate strategic decision by the Group to enter the high-growth market of power generation from clean and renewable sources of energy.

The current portfolio includes 1.3GW of wind and solar power and an additional 1.5GW under construction or planned. The Company has a 2022 growth target of 5GW of installed and operating capacity. Alongside traditional renewable projects of solar and wind, HFE will look to deliver futuristic renewable energy projects utilising new technologies including battery storage and floating solar.

Commenting on the announcement, HFE Chairman and Managing Director, Rahul Munjal, said:
“Hero Future Energies and Masdar are ideal long-term strategic partners. We have clear alignment in our core ambitions. We are committed to advancing the development, commercialisation and deployment of cutting-edge renewable power solutions. We are delighted that the renewable energy arm of Mubadala has decided to invest in the renewable energy arm of the Hero group, to accelerate HFE’s global expansion plan.

“London remains the centre of international capital and is a leading, if not, the leading financial market for sustainable business. This unparalleled access to capital and newer technologies is a key reason for moving our global headquarters to London, especially when combined with the UK’s ambitious approach to renewable energy. We are in the ideal location to create a premier global clean-tech company and help provide solutions to the enormous challenges posed by climate change”.

Mohamed Jameel Al Ramahi, Chief Executive Officer of Masdar, said:
“We are proud to associate our name with one of India’s most iconic brands and to support its further expansion, both in India’s burgeoning renewable energy sector and new geographies. Masdar is a global renewable energy leader, active in more than 25 countries, and with HFE’s standing as one of India’s leading independent power producers specialising in onshore wind energy, PV power plants and rooftop solar, we see numerous opportunities to collaborate in growing our market presence and diversifying our clean technologies portfolio. Our partnership with HFE heralds a new phase of growth for both our companies.”

Shalabh Tandon, Head of Operations (South Asia) at IFC, said:
“In 2017, we made our largest equity commitment in renewables in India by investing US$125 million in Hero Future Energies. Our goal was to support the government’s renewable energy programme and boost the confidence of other large business groups and international investors to meet the climate-financing needs of India’s private sector. With HFE’s new relationship with Masdar, we see that vision taking shape as IFC intends to continue its long-term partnership in supporting the company’s growth in India and international markets.”

About Hero Future Energies
Established in 2012, Hero Future Energies HFE, subsidiary of Hero Group, is a leading Indian renewable energy provider focussed on providing ‘Planet Positive Power’. HFE currently has a portfolio of 1.3GW and 1.5GW under construction. Over a short span of time, the company has developed a pipeline of ~500MW of large-scale grid connected solar projects across Europe, Africa and South Asia. HFE aims to have with ambitions to grow capacity to 5GW by 2022. HFE operates in primarily in wind, grid connected solar, rooftop sectors and energy storage. HFE has relocated its global headquarters to London from India. The depth of the financial markets and understanding of renewables makes it the optimum location for HFE’s global headquarters.

As the global economy continues to grow and demand cleaner power, HFE is poised to provide clean power to industries, businesses, educational institutes, non-profits and governmental organizations at competitive rates. HFE will help reduce dependence on power generated by fossil fuels like coal, oil and natural gas to fight back against climate change. https://www.herofutureenergies.com/

About Masdar
Abu Dhabi’s renewable energy company Masdar is advancing the commercialization and deployment of renewable energy, sustainable urban development and clean technologies to address global sustainability challenges. Wholly owned by Mubadala Investment Company, the strategic investment company of the Government of Abu Dhabi, our mandate is to help maintain the UAE’s leadership in the global energy sector, while supporting the diversification of both its economy and energy sources for the benefit of future generations. Masdar’s renewable energy projects are in the UAE, Jordan, Mauritania, Egypt, Morocco, the UK, Serbia and Spain.