Arctic Green Energy and GIC to Jointly Decarbonsise Building Sector

Arctic Green Energy, an Iceland-based renewable firm, and GIC, Singapore’s sovereign wealth fund, are partnering to drive the uptake of zero carbon district heating in Europe and Asia.

Under the agreement, GIC will become an equity partner in Arctic Green Energy and commit a new injection of $240 million to support the expansion of the company in Asia and Europe.

American multinational investment banking company J.P. Morgan acted as the Sole Placement Agent to Arctic Green Energy for the transaction.

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Arctic Green Energy has been working towards the decarbonisation of the building sector, most recently through the development of major geothermal company Sinopec Green Energy in China, jointly owned by Sinopec and Arctic Green. Geothermal energy technology is a renewable, economically competitive, and sustainable alternative to the use of fossil fuels for heating and cooling.

As a new shareholder and strategic partner, GIC will provide substantial capital sources, expertise in transaction capabilities and an international network to support Arctic Green’s expansion, innovation, and leadership, said the companies in a press release.

Today, almost half of the global energy consumption is used for heating and cooling in buildings and industry. As Climate Action reaches the top of the global political and economic agenda, how cities are heated and cooled is now the primary challenge for a successful transition into a clean and carbon neutral world.

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National energy policies around the globe, such as the European Green Deal, and the Paris Climate Agreement, are all creating an opportunity for investment in an energy transition that can simultaneously allow nations around the world to achieve low decarbonisation targets while growing their economies.

In an increasingly carbon constrained world, geothermal energy has emerged as an ideal choice for district heating as it is virtually non-polluting, sustainable, available and provides baseload energy without intermittency.

Arctic Green Energy believes that its core expertise lies in its technical capabilities to utilise geothermal resources of various temperatures as the backbone for clean heating and power generation and its integration with other renewable energy sources to create living breathing cities free from fugitive carbon and air pollution.

“Taking down chimneys and transforming more cities into healthy living breathing cities is now a real prospect and we look forward to our cooperation with GIC to turn this into a reality” said Haukur Hardarson, Founder and Chairman of Arctic Green Energy.