Hong Kong’s Towngas and IDG Capital Raise US$712 Million for Zero Carbon Fund

The Hong Kong and China Gas Company (Towngas) and private equity firm IDG Capital, have raised 5 billion yuan (US$712 million) for their zero-carbon technology investment fund.

The limited partners participating in the Fund include local governments, sovereign wealth funds and domestic and foreign insurance funds.

The zero carbon Fund will invest in innovative solutions 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, China.

Alan Chan Ying-lung, the Chief Investment Officer of Towngas, said: “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.”

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.

To date 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.