The distributed biogas energy improvement is anticipated to unlock more than US$3 billion in investment potential.
Heaptalk, Jakarta — Indonesia’s biogas developer, Gree Energy, has secured US$3.2 million, or approximately Rp50 billion, in a Pre-Series A investment round led by Earthcare Group, a Hong Kong-based family office focused on climate change mitigation.
As cited by dailysocial.com, this round is an additional investment of the previous Pre-Series A funding round worth US$250,000 from Water Unite Impact last May 2022. If the amount is calculated, Gree Energy has earned capital of US$3.45 million.
Leading this investment round, the Co-Head of Investments of Earthcare Group, Andre Barlian, discovered a uniquely holistic approach that allows the company to produce diversified revenue streams with little incremental cost. He also claimed Gree’s business model is highly replicable in most agricultural-based economies with growing energy demand around the Global South.
Established in 2013, Gree Energy empowers the food industry to diminish methane emissions and treat industrial wastewater in emerging countries by applying on-site biogas facilities. This injection would amplify the company’s plan to create a biogas solution that is financially viable by unlocking access to carbon credit markets, green finance, and renewable energy markets.
According to the company management, Gree Energy has utilized scalable ESG metrics to be verified independently for reporting the company’s activity, output, and transparency impact on the environment. Thus, this company has obtained a B-Corp certification to fulfill social performance standards with the highest verification environment.
As a result, Gree has accomplished its concept of the Hamparan project located in Lampung. This project has proven the potential scale of Gree’s impact on decarbonizing food industries for developing markets by decreasing more than 30,000 CO2eq emissions annually and obtaining almost 10 GWh of clean energy per year for 19 villages around Lampung regions.
Moreover, around 1,250 food processors in Indonesia have yet to be furnished with adequate wastewater treatment solutions. Gree Energy perceives this untapped potential could avoid 50 million tons of CO2eq emissions per annum and grant 40 TWh of clean energy.
Indonesia aimed to increase the share of renewable electricity from 13.5% in 2021 to 34% and reduce carbon emissions up to 32% with its capabilities and 43.2% with international assistance.
Biogas utilization is one of the proper ways to overcome the challenge, with an investment need for biogas wastewater treatment provision of more than US$2 billion. While from the distributed biogas energy asset enhancement, the investment value is estimated to gain over $3 billion.
“Green’s vision to reduce pollution in the agriculture and food sector to replace energy generated from fossil fuels is key to mitigating climate change. This point is strongly aligned with Indonesia‘s intention to cut the carbon emissions happening in the country by 43% by 2030,” concluded Andre.
