Singapore-based venture capital firm TRIREC on Tuesday announced the launch of a new fund in partnership with Thai energy tech company INNOPOWER for decarbonisation investments.
The fund, called Energy Ignition Ventures, has a minimum fundraising target of $100 million. DealStreetAsia reported the launch of the new TRIREC fund earlier this month.
Energy Ignition Ventures has secured an undisclosed initial capital commitment from the two partners. It will invest in growth-stage companies with a clear decarbonisation impact, proven product-market fit, and early commercial traction in five sectors that are key emitters of greenhouse gases – food and agriculture, mobility, buildings, industries, and energy.
INNOPOWER is a joint venture between Thai energy companies Electricity Generating Authority of Thailand (EGAT), RATCH Group and EGCO Group.
“Through our partnership with INNOPOWER, we will be able to harness our expansive network of global partners and tap into our extensive expertise in investing within this space,” said TRIREC founder and managing partner Melvyn Yeo in a prepared statement.
TRIREC, which has backed companies such as AirCarbon Exchange, Oyika and Green Li-ion in Southeast Asia, is finalising the close for its second fund at around $80 million after securing capital from INNOPOWER and Thailand-listed Banpu, among other investors.
“Adopting Net Zero energy solutions is the biggest growth opportunity for businesses, and Energy Ignition Ventures has a strategic advantage to usher in a new era of energy,” said INNOPOWER chief executive Athip Tantivorawong.
Besides TRIREC, a wave of climate tech financiers in the region have recently been searching for backers to fund their investments in the fight for a carbon-free future.
Earlier this month, DealStreetAsia reported that Singapore-based Wavemaker Impact, the climate-focused venture-building vehicle of Wavemaker Partners, is nearing the final close for its first vehicle at over $25 million. Meanwhile, Bangkok-headquartered impact investor The Radical Fund recently said it aims to gather around $40 million for its first region-focused fund.
The fresh wave of ESG-linked investment activities in the startup scene came around two years after Atlas Capital became the region’s first climate tech fund in 2020. With eight companies in the US and Europe under its portfolio, the venture capitalist recently said that it is raising a second fund with a mandate to invest globally “with a little edge” in Southeast Asia. Meanwhile, Temasek-backed LeapFrog Investments is looking at a target of $600-700 million for its new climate-focused fund, DealStreetAsia reported in May.
Southeast Asia’s private sector drew in $1.11 billion in funding for climate technology companies in the first 11 months of 2022, according to DealStreetAsia’s latest report on the sector in December. Of overall equity funding in the region in that period, 7.8% went to the sector, higher than the 2.6% bagged in the same period in 2021.
INNOPOWER was established in 2022 as an energy innovation company and has 3 billion baht lined up for investments. Its launch was driven by Thailand’s pledge to achieve carbon neutrality by 2050 and net-zero greenhouse gas emissions by 2065 at the 2021 UN Climate Change Conference (COP26).
Last October, Singapore said it aims to achieve its net-zero goals by 2050 despite being a city-state with a disadvantage in renewable resources.