Norway’s state-owned Norfund has invested Rs. 500 crore in waste-to-energy maker SAEL for an undisclosed stake, as per a statement on the former’s website.
The Delhi-based SAEL has the largest capacity of waste-to-energy generation plants of around 160 gigawatts. The company uses stubble left as a by-product of rice cultivation to generate energy.
“By collecting the crop stubble to be used as fuel in our waste-to-energy plants, we contribute to combat one of our nation’s greatest health issues”, said Jasbir Awla, SAEL’s chairman and managing director.
SAEL is also providing employment opportunities to farmers by setting up energy plants in rural areas near cultivable lands and creates sources of additional income for the farming community when the company purchases stubble from them, according to Awla.
“We are thrilled to be able to contribute with the necessary financing for SAEL to reach its ambitions and contribute to reduce climate emissions and local pollution”, said Mark Davis, EVP, Renewable Energy, Norfund.
Norfund is the investment fund of the Norwegian government dedicated towards investment in impactful projects in developing countries.
The investment has been made out of its climate investment fund.
Norfund’s equity stake in the company will be determined at the time of the initial public offering, according to SAEL’s chief investment officer, Varun Gupta.
Gupta said the stake would be calculated based on the returns generated on Norfund’s investment.
SAEL has a target to reach 3 gigawatts of renewable energy generation within the next five years. It has an ambitious investment plan estimated at Rs. 10,000 crore for the development of renewable energy.
