Singapore’s sovereign wealth fund GIC will become an equity partner in Arctic Green Energy and commit a substantial new injection of S$240 million to support the expansion of the company in Asia and Europe, to drive the uptake of zero carbon district heating in Europe and Asia.
Arctic Green Energy has become a major global player in the sustainable energy transition and the decarbonization of the building sector most recently through the development of the largest and fastest growing geothermal company in the world, Sinopec Green Energy in China, jointly owned by Sinopec and Arctic Green. Geothermal energy technology is a renewable, economically competitive, and sustainable alternative to the use of fossil fuels for heating and cooling.
Arctic Green Energy’s wealth of experience in managing, developing, and investing in geothermal and other complementary renewable energy projects provides a platform for rapidly growing geothermal penetration in hard to decarbonize sectors such as buildings. As a new shareholder and strategic partner, GIC will provide substantial capital sources, expertise in transaction capabilities and an international network to support Arctic Green’s expansion, innovation, and leadership.
Today, almost half of the global energy consumption is used for heating and cooling in buildings and industry. As Climate Action reaches the top of the global political and economic agenda, how cities are heated and cooled is now the primary challenge for successful transition into a clean and carbon neutral world. National energy policies around the globe, the European Green Deal, and the Paris Climate Agreement are all creating an unprecedented opportunity for investment in an energy transition that can simultaneously allow nations around the world to achieve low decarbonization targets while growing their economies.
In an increasingly carbon constrained world, geothermal energy has emerged as an ideal choice for district heating as it is virtually non-polluting, sustainable, available and provides baseload energy without intermittency. The core expertise of Arctic Green Energy lies in its unique technical capabilities in utilizing geothermal resources of various temperatures as the backbone for clean heating and power generation and its integration with other renewable energy sources to create living breathing cities free from fugitive carbon and air pollution.
Arctic Green Energy aims to be at the forefront of transforming the heating market to clean and renewable energy based on the principles of a sustainable energy transition, efficiency and security. In addition to its joint venture in China, Arctic Green is developing a suite of bankable renewable energy projects in Asia and Europe, which include the recently announced an ambitious district heating project in Europe.