KKR to invest USD 400m in P2X JV with Ignis

US private equity firm KKR & Co (NYSE:KKR) has agreed to pour up to EUR 400 million (USD 429.2m) for the development and construction of primarily green hydrogen and ammonia projects as part of a new Power-to-X (P2X) joint venture with Spanish renewables firm Ignis.

The new platform includes a pipeline of around 20 GW of P2X projects across Spain and other selected countries, as well as more than 10 GW of advanced and early-stage renewables in Spain and additional renewable projects globally, a press statement said today.

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The new entity, IGNIS P2X, will develop green hydrogen, ammonia, e-methanol, e-fuels and sustainable aviation fuel (SAF) plants. It will target clients in the refining, steel, chemicals and fertiliser sectors, among other. It will bet on traditional renewables, largely wind and solar.

The joint company will be equally owned by the two partners and will be based in Spain.

Founded in 2015, Ignis has been involved in the development of a portfolio of more than 20 GW of renewable projects in Europe, the US, Latin America and Asia.

The investment comes as the third bet under KKR's global climate strategy, which launched in 2023. It follows the investments in UK-based fleet electrification and grid-scale battery storage company Zenobe and California-based solar and solar-plus-storage developer Avantus.

(EUR 1 = USD 1.073)