Singapore-based renewable energy company Equator Renewables Asia (ERA), the second venture from Sunseap Group co-founder Frank Phuan, has raised S$50 million ($39 million) to fund its development of solar, green hydrogen, and sustainable industrial zone projects in Indonesia.
The funding was anchored by Indonesian conglomerate KPN Corporation, whose businesses span palm oil plantations and processing to building materials and real estate; and Singapore-based family-backed enterprise Tsao Pao Chee.
The two investors are among strategic cornerstone investors who contributed $30 million, ERA said in a statement.
ERA CEO Phuan and the company’s management will contribute another S$20 million.
ERA has already secured conditional approval and a conditional import licence from Singapore’s Energy Market Authority (EMA) for up to 400 MW of renewable power to be exported from Indonesia. This follows the signing of a memorandum of understanding between the two countries in June last year, aimed at establishing a Sustainable Industrial Zone (SIZ) in the Batam, Bintan, and Karimun regions.
Both Indonesia and Singapore are targeting net-zero carbon emissions by 2050 and 2060, respectively. According to ERA, its project to connect the two countries in the decarbonisation initiatives represents an important step towards the development of the regional ASEAN Power Grid.
ERA specialises in solar, battery storage, cross-border interconnection, and green hydrogen. The company was set up last year after Phuan exited from Sunseap, selling his shares to Portugal-headquartered energy company EDP Renewables.
ERA’s project portfolio in Indonesia includes multiple solar PV developments, with an aggregate capacity of 2.2 GWp, 3.2 GWh of battery energy storage systems, and new green hydrogen initiatives.
On its part, KPN said it is committed to repurposing portions of its landbank in Indonesia for utility-scale solar, battery storage, and green hydrogen production.
