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Fortum Exits India’s Renewable Sector; Hexa Climate Solutions Acquires Fortum India

Finland’s state-run utility, Fortum Oyj, is exiting India’s renewable energy market by selling its platform, Fortum India Pvt. Ltd (FIPL), to New York-based Hexa Climate Solutions, backed by I Squared Capital. The acquisition includes FIPL’s management company, a portfolio of carbon credits, and a 206 MW commercial and industrial (C&I) solar-wind hybrid project, along with 600 MW of ready-to-build projects.

The transaction, managed by EY under "Project Samsara," attracted interest from major global players, including Marubeni Corp, APG, and AP Moller Capital. Hexa Climate Solutions ultimately acquired a 100% stake, including FIPL’s 40-member team. Fortum had earlier signaled its intent to scale back in India, aligning with its Nordic-focused strategy, and had previously divested a 185 MW Indian solar portfolio in May 2024.

Hexa Climate Solutions, led by Sanjeev Aggarwal, plans to invest $500 million into renewable energy, water, and carbon offset projects, supported by a 2.5 GW development pipeline. The deal marks Fortum’s complete retreat from India’s renewables sector after entering the market in 2012.

An official announcement regarding the transaction is expected shortly, as Fortum continues evaluating its remaining India operations without making new commitments.