Nature Elements Capital, a Chinese investment firm, aims to raise up to $400 million for a private-equity fund that will invest in renewable energy opportunities in China.
The firm is looking to raise cash from both Chinese and U.S. investor, reports Dow Jones. Last week the fund recently signed a memorandum of understanding with the Hangzhou government, which will become a sponsor and has committed to invest CNY100 million ($14.64 million).
The fund will have both Chinese yuan and U.S. dollar components. The firm aims to raise about CNY1 billion (US$146 million) and between $150 million to $200 million. KK Chan, the firm’s founder, said The U.S. dollar and yuan funds might invest in tandem or individually, depending on the investment opportunity.
China is poised to become one of the world’s largest cleantech market. According to the American Wind Energy Association, China added some 6,300 megawatts in wind capacity. The International Energy Agency estimates the country needs to increase its total generation capacity by 800 gigawatts by 2030 to meet demand — roughly double its current capacity.
A report, released last year, estimates that the country’s green energy market, which includes everything from wind and solar farms and battery-powered automobiles, could be worth between $500 billion and $1 trillion a year.
Chan was formerly managing director and head of investments for Greater China at Climate Change Capital. He was also managing director at CLP Renewables, where he oversaw the clean energy division for Asia Pacific.