Renewable Energy Certificates Firm Bags US$10 Million Series A Funding

Redex, the Singapore-based Renewable Energy Certificates (RECs) solutions provider, has announced the successful completion of a US$10 million Series A funding round.

Aramco Ventures led the investment, along with notable new investors from the Middle East, Southeast Asia, and Japan. Aramco Ventures is the corporate venturing subsidiary of Aramco, the integrated energy and petrochemical enterprise.

Redex’s mission is to accelerate the transition towards renewable energy. The new funding will allow the company to expand beyond Asia, and to further innovate in streamlining and digitising the issuance and trading of RECs.

Established in 2018, Redex Group is a first-mover RECs player in Asia, offering a full suite of RECs management solutions covering asset registration, verification, trading, and retirement.

As a concept, RECs are very simple – the instrument traces one’s power consumption to renewable energy sources. Its simplicity is precisely why the instrument is the most convenient and practical way for companies to achieve Scope 2 neutrality.

Great Potential

RECs are endorsed and adopted by RE100, the main consortium of leading brand owners committed to 100% renewable electricity. The consortium was originally formed in 2014 by 13 corporate partners. Today, RE100 has more than 400 members who consume around 400 TWh of power.

Redex believes there is great potential to apply RECs creatively 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).

In April, the company announced that it was the first API-integrated Platform Operator Account on I-REC, the world’s largest RECs registry. In June, Redex also announced its partnership with China Southern Grid, supporting the grid operator in its role as an I-REC Issuer in China.

“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.”