Singapore-based renewable energy certificate (REC) service provider REDEX has successfully raised $10 million in a Series A funding round. Aramco Ventures, a subsidiary of Saudi Aramco (2222. SE), led this investment as one of its initial investments in this region.
Additionally, new investors from the Middle East, Southeast Asia, and Japan have contributed to this funding round, although their identities have yet to be disclosed.
With the new funding, REDEX aims to accelerate the global transition toward renewable energy. This new funding will enable REDEX to expand its operations beyond Asia and continue enhancing the efficiency and digitalization of REC issuance and trading.
Bruce Niven, Executive MD, Strategic Venturing at Aramco Ventures, shared his thoughts on the new collaboration. “REDEX is well positioned as the leading marketplace for I-RECs, which will enable renewable energy markets in many parts of the world. We look forward to collaborating with the REDEX team to extend this capability into new geographies,” he stated.
REDEX Group, established in 2018, is one of the early players in the (RECs) sector in Asia. It offers a comprehensive suite of solutions to manage RECs, encompassing asset registration, verification, trading, and retirement.
The RECs serve as vital documentation, confirming that the energy generation sources are from eco-friendly sources. The ability to trace these RECs allows companies to achieve carbon neutrality for Scope 2 emissions, which relate to the indirect carbon emissions from electricity, steam, heat, or cooling purchases. It effectively aids businesses in their journey to minimize their environmental footprint.
“We are witnessing tremendous growth in adopting 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.
In April, the company became the world’s first API-integrated Platform Operator Account on the International REC Standard (I-REC), a registry recognized as the largest of its kind globally.
Further, in June, REDEX unveiled a significant partnership with China Southern Grid. This collaboration sees REDEX supporting the grid operator in its capacity as an I-REC Issuer within China for the facilitation and expansion of renewable energy certification initiatives in the country.
REDEX envisions a broader application of RECs, particularly in industrial sectors. Sectors such as green aluminum, steel, and cement hold immense promise for the creative utilization of RECs, aligning with the initial phases of Europe’s Carbon Border Adjustment Mechanism (CBAM).