Fortescue, an Australian green technology, energy and metals company, is in talks to buy solar and storage independent power producer (IPP) Recurrent Energy from Canadian Solar, two sources familiar with the situation said.

The sale process is now in the exclusive due diligence phase, said the two sources and a sector executive.

This news service reported in May that Nasdaq-listed Canadian Solar was exploring a sale of its majority stake in Recurrent Energy and that Wells Fargo Advisory and Santander were acting as sellside financial advisors.

Fortescue, Recurrent, Wells Fargo, and Santander declined to comment. Canadian Solar did not respond to requests for comment.

Austin, Texas-based Recurrent was founded in 2006 and acquired by Canadian Solar in 2015. Last year, BlackRock made a USD 500m preferred equity investment in Recurrent from its Global Renewable Power Fund IV.

Recurrent has developed roughly 12 GW of operating utility-scale solar projects and 6 GWh of energy storage projects globally, according to its website. It also has a development portfolio of roughly 25 GW of solar and 69 GWh of battery storage projects.

Perth-based Fortescue, for its part, is one of the world’s leading iron ore producers and has recently touted its efforts towards decarbonization by bringing together green sustainable mining, large-scale renewable power, and using green hydrogen to produce green iron ore.

“We will decarbonize profitably by lowering operating costs, future proofing our business and creating new revenue streams,” the company said in a May 2024 investor presentation.

In 2023, the company established Fortescue Capital to invest globally across the energy transition spectrum, according to its website. Fortescue Capital is led by CEO Robert Tichio.