Aramco Ventures leads $10 mln investment in Asia renewable service provider REDEX

Yash Innoventures

30/10/2023 23:00

By Florence Tan
       SINGAPORE, Oct 30 (Reuters) - Singapore-based renewable
energy certificate (REC) service provider REDEX said on Tuesday
it has raised $10 million from investors led by Aramco Ventures,
a subsidiary of Saudi Aramco  2222.SE , to fund its expansion
beyond Asia.
    Other new investors in REDEX are from the Middle East,
Southeast Asia, and Japan, the company said in a statement,
without naming them.
    "We are planning to get into the Middle East and Latin
America markets in 2024 through the partnership with our
strategic investors," Jen-Wee Kang, founder and CEO of REDEX
told Reuters.
    "The first location is probably Saudi Arabia."
    REDEX operates a platform for utilities across Asia to
register, verify and retire RECs. Each REC represents 1 megawatt
hour of renewable electricity generated.
    These certificates are traded on REDEX's platform, purchased
by companies seeking to offset their scope 2 emissions from
fossil-fuel power generation.
    While offset products have been criticised for undermining
efforts to fight climate change by allowing fossil fuels to
still be consumed, they are viewed as a viable way for
businesses to lower total net emissions. RECs have also become a
source of income for renewable power generators.
    Separately, REDEX said it started in June a partnership with
China Southern Power Grid, one of the country's duopoly state
power grids, to support the company in becoming a REC issuer in
the world's fastest growing renewable power market.
    

 (Reporting by Florence Tan; editing by Miral Fahmy)
 ((Florence.Tan@thomsonreuters.com; Reuters Messaging:
florence.tan.thomsonreuters.com@reuters.net))