Akcome Group and Climate Endowment Jointly set up a JV to manage 1 billion Singapore dollar Asia-Pacific Renewable Energy Development Fund
On May 12, 2020, after half a year of joint efforts and close consultations, Akcome Group and the Climate Endowment formally signed a MOU. The two parties will jointly establish a 1 billion Singapore dollar Asia-Pacific Renewable Energy Fund in the Asia-Pacific region for the investment and management of high-quality renewable energy assets such as photovoltaic power plants.
The fund will be dedicated to help improve the global environment, especially to address environmental issues due to global warming, accelerate the development and roll-out of renewable energy, reduce carbon dioxide emissions, and provide comprehensive solutions for renewable energy. Starting from China, the fund will be invest along the Belt and Road in the Asia-Pacific region and gradually expand to the rest of the world. In the future, it will be built into an international, leading institutional scale, renewable energy development fund. The fund plans to grow in the future and invest more than 5 billion Singapore dollars over the next 5 years in the construction and acquisition of renewable energy assets. The Akcome Group will provide the full suite of professional services such as renewable energy development from project development to EPC construction and plant operation and maintenance. The Climate Endowment will provide asset management and global capital markets experience. The combination of both Akcome’s and Climate Endowment’s strengths will provide a strong basis for the success of the fund in the future.
The fund's investment fields are photovoltaic power generation, wind power, hydropower, energy storage and other related renewable energy projects that reduce carbon emissions compared to fossil fuel-based energy generation. The fund’s targeted investors are well-known large institutions from Western Europe and Asia that face the difficult task of achieving sufficient stable returns in a zero-interest rate environment that match their long-dated liabilities and ESG targets. Renewable energy projects such as photovoltaic power plants are hard asset investments with long operational lifespans forming an attractive asset for long term investors.
The fund's first investments will be created via acquisitions of solar energy projects in China, to form a high-quality portfolio of solar energy assets. Following this the fund aims to list in Singapore as a Business Trust with the aim to offer the possibility to invest in stable dividend generating, low carbon emitting assets to a wider range of investors.
Signing ceremony in times of Corona on the video conference – left: Mr. chenghui Zou,chairman, Akcome Group; right: Mr. Markus Bodenmeier, CIO DACH, Climate Endowment
Future development plan of Asia-Pacific Renewable Energy Fund
The Asia-Pacific Renewable Energy Fund plans to acquire renewable energy projects of more than 8GW over the next five years, including large-scale ground, distributed and other affordable photovoltaic power generation, wind and solar integration, and light and storage integration projects. The main target geographic region includes China, Japan, India and Southeast Asia.
About Climate Endowment
The Climate Endowment is a climate-impact asset manager whose mission is to combat climate change through long-term sustainable investment, so that global institutional investors can obtain stable returns and make a contribution to the preservation of the environment at the same time.
The Climate Endowment focuses on illiquid investments in sustainable and commercially viable technologies and business models, thereby greatly reducing global carbon dioxide emissions. The Climate Endowment initial focus is both on investments with real asset or infrastructure character in the energy, transportation and agri-forestry space as well as on artificial intelligence / information technology, education and health, economic transformation and other related fields. It believes that investing in the winners of the green industrial revolution is a critical element to successful investing for the coming decades.
About Akcome Group
Akcome Group was established in 2006 and is headquartered in Zhangjiagang City, Jiangsu Province, a model city of the United Nations. It is one of China's leading new energy integrated service groups. Akcome Technology (002610) was listed on the Shenzhen Stock Exchange in 2011. In 2018, Akcome ranked No. 476 in the list of China's Top 500 Private Enterprises, and No. 57 in the Global New Energy Top 500 list.
After the establishment of the initial Akcome solar frame business, it successfully developed Europe, the United States, Japan and other markets, and became the leading enterprise in the global photovoltaic accessories industry. Based on this, Akcome Group has gradually expanded its core photovoltaic manufacturing businesses such as photovoltaic material processing, photovoltaic brackets, photovoltaic cell modules, and photovoltaic new materials, and successfully landed on the A-share market in 2011.
In 2011, marked by the successful listing of "Akcome Technology", Akcome Group made a foray into the photovoltaic downstream photovoltaic power generation business and quickly achieved remarkable results in the development and holding of about 1.4GW of photovoltaic power plants, laying a leading position in the development, operation and maintenance of photovoltaic power plants. Status.
In 2016, Akcome took the initiative to start a strategic transformation, focusing on industry, light assets, and high circulation, to create a new energy manufacturing business centered on "efficient manufacturing" and a new energy service business centered on "smart platformization".