Singapore sovereign wealth fund GIC Pte and private equity major Carlyle Group Inc have made a strategic investment in Eneus Energy Limited, a green ammonia project development company based in the UK.
Financial details of the investment were not disclosed. GIC said the deal will allow Eneus Energy to develop green ammonia projects made using renewable energy, starting with the US and UK.
Pooja Goyal, chief investment officer of Carlyle’s infrastructure group, told Bloomberg that the deal gives the two investors the ability to invest more than $3 billion in Eneus Energy’s projects in the next five years.
Green ammonia is a zero-carbon fuel in its own right, as well as an important, cost-effective storage and transport energy vector for green hydrogen. It is useful in the fight to curb greenhouse gas emissions.
“The potential global market demand for green ammonia is huge as decarbonisation strategies are being implemented to reduce the emission of greenhouse gases from fossil fuels,” said Eneus Energy CEO Chris Bronsdon.
Established in 2013, Eneus is among a small cohort of first movers for industrial-scale production plants in a global market for green ammonia or green hydrogen. The market is forecast to grow strongly to 2050 as nations execute their “net zero” carbon strategies.
Ang Eng Seng, GIC chief investment officer of Infrastructure, said the investment positions the sovereign wealth fund early for the green hydrogen market, which GIC believes will play a crucial role in the transition to clean energy.
“The investment in Eneus reflects GIC’s continued deep commitment to renewable energy innovation and global decarbonisation efforts,” Ang said.
GIC’s green and sustainable portfolio includes Storegga, a company focused on carbon reduction and removal; ecoATM, an electronic device recycling company that reduces e-waste in an economically attractive way; Greenko, one of India’s largest renewable energy companies; and US-based Duke Energy Indiana.
It has also invested in Arctic Green Energy, which focuses on the decarbonisation of the building sector, and Solar, Berlin-based digital solar platforms, among others.