22 May 2023
Towngas and IDG Capital successfully raise RMB 5 billion for Zero-carbon Fund, signposting new direction for investment in energy innovation
(22 May 2023) The Hong Kong and China Gas Company Limiter (Towngas) and IDG Capital announced that their first Zero-carbon Technology Investment Fund, focused on "technology investment + scene empowerment" , has reached its fundraising goal of RMB 5 billion, making it the first technology fund on the mainland with a focus. The limited partners participating in the Fund include local governments, top sovereign wealth funds, large domestic and foreign insurance funds, as well as government venture capitals and other well-known institutions.
The Zero-carbon Fund will be used to come up with innovative solutions to solve the pain points in key carbon emission scenarios, with a focus on investing in zero-carbon technology-related innovation areas such as solar energy, power batteries, energy storage, smart grid, battery charging and swapping, hydrogen energy, carbon capture, as well as carbon trading and management.
The Fund will be based in Changzhou and will form a good synergy mechanism with the city’s industrial development, obtaining support from the local government for its investee companies, while working with Towngas to promote the development of Changzhou’s new energy industry and zero-carbon progress.
The Fund is unique in that it will not only provide capital support to innovative startups in the zero-carbon technology sector, but will also open up Towngas and Towngas Smart Energy’s rich application scenarios to accelerate the implementation of the investee companies’ products and technologies in their corresponding application scenarios. Additionally, the Fund will invest in and incubate more zero-carbon technology innovation enterprises worldwide, providing them with full-cycle support from product development, prototype validation to commercialisation, and exploring new opportunities brought about by integrating technology and new energy.
Ms Fang Jun, a partner of IDG Capital, said, “The Zero-carbon Fund is the first zero-carbon technology fund in China with the theme of “technology investment + scene empowerment”, which will promote innovative energy technology and products of outstanding investee companies through real-life scenario application, promote energy saving and emission reduction, and help achieve the dual carbon goals. We understand that technological innovation and product development in the energy sector can only be implemented faster and continue to improve if there is continuous feedback from the applications in the field. As one of the earliest investors in China to invest in new energy, IDG Capital will build on its own experience in the clean energy sector to form an upstream and downstream industry chain, and combine it with Towngas’ abundant energy application scenarios to support the development of companies that have technological advantages or scale manufacturing strengths to accomplish the carbon neutrality goal as soon as possible.”
Mr Alan Chan Ying-lung, the Chief Investment Officer of Towngas, remarked, “The strong support for the Zero-carbon Fund from a number of leading investment institutions is recognition of Towngas, a 160-year-old energy company, and our partnership with IDG Capital to drive our investment direction in zero-carbon innovation and technology. We will further leverage Towngas’ presence, experience and operational capabilities in the smart energy industry, capitalising on the respective trailblazing strengths of Towngas and IDG, and collaborate with IDG Capital to build a diversified investment management portfolio around energy innovation and technology to help outstanding entrepreneurs grow rapidly and contribute solid investment returns to the limited partners.”
As the Fund’s founding party and strategic partner, Towngas, with a 160-year history, is the first public utility in Hong Kong and one of Asia’s largest energy suppliers. Towngas not only has extensive experience in managing operations in the energy industry, but also has a wide range of application scenarios. Towngas and its subsidiary, Towngas Smart Energy, are building a full industry chain of green energy to realise the complementary advantages of traditional and renewable energy, with its business scope covering key projects such as city gas, renewable energy and eco-friendly water supply. Towngas Smart Energy has invested in more than 500 smart energy projects in 22 provincial regions and 80 zero-carbon industrial parks across the Chinese mainland, providing green, safe and efficient zero-carbon smart energy management services and technology solutions to industrial and commercial customers along with industrial parks. These experiences and scenarios will enable the Fund’s investee companies to accelerate the implementation of new products or solutions they developed.
The Fund manager, IDG Capital, has many years of experience in the energy sector and has invested in a wide range of outstanding energy companies across the entire new energy industry chain and field for over 20 years. At the same time, with its roots in technology, IDG Capital has a unique understanding and advantage of how to seize the wave of technological revolution to lead the transformation of the traditional energy industry in the era of technology-driven green energy transformation. Over the past 30 years, IDG Capital has invested in nearly half of the Chinese mainland unicorns and helped more than 500 investee companies go public or exit through mergers and acquisitions, backing over 100 top companies with valuations of over US$1 billion.
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For media enquiries, please contact:
The Hong Kong and China Gas Company Limited
Mr Addie Lam
Assistant General Manager –
Corporate Affairs
Tel: 2963 2578 / 6702 6449
Email:
addie.lam@towngas.com |
Ms Kara Kwong
Senior Corporate Communications Officer
Tel: 2963 3497 / 6698 3357
Email:
kara.kwong@towngas.com |