The Singapore-based energy services infrastructure platform (EaaS) August Energy and the Indian energy efficiency firm Energeia announced a $100 million partnership on Wednesday. The goal of this collaboration is to finance and implement energy efficiency projects for clients in the commercial and industrial (C&I) sector.
The platform, named August Energeia, will provide financing and implementation of modernizations to energy-intensive infrastructure, including cooling, heating, steam, compressed air, fuel switching, and drive systems. Furthermore, it will support the installation of renewable energy sources such as solar panels, wind turbines, and storage systems, which will be overseen by August Energy, allowing clients to avoid initial capital expenditures.
The companies stated in a release that August Energeia will handle the financing, implementation, and management of energy infrastructure, with the economic viability of the projects tied to achieved performance and savings.
The platform targets high energy consumption industries, including pharmaceuticals, automotive manufacturing, food and beverage, chemical industry, cement and steel production, hospitality, healthcare, data centers, real estate investment trusts (REITs), and commercial real estate.
Sukrit Malik, co-founder and CEO of Energeia, noted that technologies for optimizing and decarbonizing Indian factories and buildings have been available for many years. However, implementation was severely limited by high initial costs, uncertainty regarding energy savings, and L1 procurement requirements. The shift in the financial model from high-risk CAPEX to predictable, results-linked OPEX removes initial barriers and ensures outcomes are achieved rather than just products being sold.
As part of this partnership, August Energy is attracting capital from institutional investors from Europe, Japan, and Asia, including Aravest, Green Tower, Proparco, responsAbility, and Aseem.
