Aramco Ventures, a subsidiary of Saudi energy and petrochemical enterprise Aramco, announced that it led a $10 million Series A round for Singapore-based renewable energy certificate (REC) service provider REDEX.
The round aims to boost the company’s expansion outside Asia.
It also saw participation from new investors in the Middle East, Southeast Asia, and Japan.
RECs (renewable energy certificates) are very simple – the tool tracks one’s power consumption from renewable energy sources. It is adopting a practical and simple way for companies to achieve Scope 2 neutrality.
RE100, the main consortium of leading brand owners committed to 100% renewable electricity, adopts RECs, which were originally formed in 2014 by 13 corporate partners.
RE100 has more than 400 members who consume around 400 TWh of power.
REDEX Group was founded in 2018 by Jen-Wee Kang, offering a full suite of RECs management solutions covering asset registration, verification, trading, and retirement.
“We are witnessing tremendous growth in the adoption of RECs by brand owners striving to be 100% renewable, both for themselves and their supply chains,” said Jen-Wee Kang, Founder and CEO of REDEX.
“The demand for green energy is very real, and the number of RECs issued and retired is more than doubling year on year. Building on the trust we have established with key players in the ecosystem, REDEX is well-positioned to play a leading role in the exponential growth of RECs adoption globally,” added Kang.
“REDEX is well positioned as the leading marketplace for I-RECs, which will enable renewable energy markets in many parts of the world. We look forward to collaborating with the REDEX team to extend this capability into new geographies,” said Bruce Niven, Executive MD, Strategic Venturing at Aramco Ventures.
REDEX believes there is great potential to apply RECs in the industrial sector, like for green aluminium, steel, and cement – commodities that are covered in the starting phase of Europe’s Carbon Border Adjustment Mechanism (CBAM).
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