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Keppel Ltd. (Keppel), Keppel Asia Infrastructure Fund (KAIF), and a co-investor (collectively, Keppel and its partners) have completed the acquisition of the remaining 49% stake in Cleantech Renewable Assets Pte Ltd (CRA) from Shell Singapore Pte Ltd. This strategic acquisition follows their initial acquisition of a 51% stake in CRA in October 2022 and reflects Keppel’s focus on expanding its solutions supporting the global energy transition and decarbonisation efforts.
Post completion, Keppel and its partners will hold 100% of Cleantech Renewable Assets[1]. This move is aligned with Keppel’s goal to grow its renewables business and expand its footprint as a global asset manager and operator creating solutions for a sustainable future.
Headquartered in Singapore, CRA is a leading solar energy platform focused on the commercial and industrial (C&I) segment, with assets across India and Southeast Asia. Since Keppel’s acquisition in 2022, CRA more than doubled its solar portfolio to a total capacity of about 1.1GW across various stages of operations and targets to add another 1 GW of solar assets by end of 2026. In addition, CRA has expanded its capabilities into wind projects as well. As existing shareholders, Keppel and its limited partners are well-positioned to support CRA’s continued growth across the region.
“Holding all of Cleantech will strengthen our ability both as a key investor and General Partner to drive performance, accelerate decision-making as well as augment Keppel’s ability to create greater value from a proven and scalable renewable energy platform,” said Mr Jopy Chiang, Deputy Chief Investment Officer and Chief Investment Officer, Infrastructure of Keppel. “By working closely with Cleantech’s management team and applying Keppel’s deep operating expertise, we aim to unlock new growth opportunities and enhance returns for Keppel and our Limited Partners, while advancing our strategic focus on renewables, clean energy and decarbonisation.”
The acquisition comes at a pivotal time for Southeast Asia and India’s clean energy landscapes, which are undergoing rapid transformation driven by national sustainability goals, and positive market economics. According to the International Energy Agency, Southeast Asia’s solar sector is among the most cost-competitive options for new electricity generation. Meanwhile, India is targeting 500 GW of renewable capacity by 2030[2] and C&I renewables projected to grow at ~23% CAGR through 2027[3]. These developments, in CRA’s target markets, reflect a favorable landscape for CRA to position itself for growth.
KAIF adopts a value-add strategy and invests in a portfolio of greenfield and growth opportunities across the Asia Pacific region. Earlier in September this year, KAIF and Keppel announced the divestment of their 80% stake in 800 Super, a Singaporean environmental services company. The divestment values 800 Super at over S$600 million based on 100% of 800 Super’s enterprise value and is expected to generate an Internal Rate of Return in the mid-teens and capital gains equivalent to half the amount invested for KAIF’s Limited Partners upon divestment, underscoring Keppel’s disciplined approach and focus on delivering strong risk-adjusted returns to investors.
The above-mentioned transaction is not expected to have any material impact on the earnings per share and net tangible asset per share of Keppel for the current financial year.
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[1] Keppel will (through a subsidiary) hold a 60% stake in CRA and KAIF and its co-investor will hold the remaining 40% stake.
[2] https://www.reuters.com/business/energy/india-hits-50-non-fossil-power-milestone-ahead-2030-clean-energy-target-2025-07-14/#:~:text=India%20now%20targets%20500%20GW,NR;%20Editing%20by%20Shailesh%20Kuber
[3] https://bridgetoindia.com/content/wp-content/uploads/2023/03/India-Corporate-Renewable-Market-Report-March-2023-Executive-Summary.pdf
About Keppel Ltd.
Keppel Ltd. (SGX:BN4) is a global asset manager and operator with strong expertise in sustainability-related solutions spanning the areas of infrastructure, real estate and connectivity. Headquartered in Singapore, Keppel operates in more than 20 countries worldwide, providing critical infrastructure and services for renewables, clean energy, decarbonisation, sustainable urban renewal and digital connectivity. Keppel creates value for investors and stakeholders through its quality investment platforms and diverse asset portfolios, including private funds and listed real estate and business trusts.
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