- Investors from the Middle East, SEA & Japan also participated in this round
- Funds will enable global expansion and streamline REC issuance and digitisation
Redex, Asia’s leading Renewable Energy Certificates (RECs) solutions provider, announced the completion of its US$ 10 million (RM47.6 million) Series A funding round, with Aramco Ventures as the lead investor. Additionally, other notable new investors from the Middle East, Southeast Asia, and Japan have participated in this round.
In a statement released by the firm, Redex reaffirms its mission is to accelerate the world’s transition towards renewable energy. This new funding will enable the company to expand beyond Asia, and further innovate in streamlining and digitising the issuance and trading of RECs.
Bruce Niven, executive MD of Strategic Venturing at Aramco Ventures emphasised that Redex is well-positioned as the leading marketplace for I-RECs, which will enable renewable energy markets in various parts of the world. He also expressed the firm’s anticipation of collaborating with the Redex team to extend this capability into new geographies.
Established in 2018, Redex Group claims to be the first-mover in the RECs market in Asia, offering a comprehensive suite of RECs management solutions, including asset registration, verification, trading, and retirement.
Jen-Wee Kang (pic), founder and CEO of Redex, said, “We are witnessing significant growth in the adoption of RECs by brand owners striving to be 100% renewable energy, both for themselves and their supply chains.
“The demand for green energy is substantial, 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 growth of RECs adoption globally,” he added.
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.
RECs are endorsed and adopted by RE100, the primary 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, such as for green aluminum, steel, and cement – commodities covered in the initial phase of Europe’s Carbon Border Adjustment Mechanism .
In April, the company announced that it was the first API-integrated Platform Operator Account on I-REC, the 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.