China energy storage start-up gets $48m pre-Series A

Existing backers CAS Star - which is controlled by the Chinese Academy of Sciences - CMB International, Legend Star, and Puhua Capital re-upped. Other investors include Gaorong Capital, Shanghai-listed China Three Gorges Renewables, Cuiwei Group, China-Belgium Direct Equity Investment Fund, and Xinding Capital.

Founded in 2005, ZGT focuses on compressed air energy storage (CAES) technology. Its core technology comes from a research unit under the Chinese Academy of Sciences, which was the first institution in the country to focus on large-scale CAES. It claims to have built the world’s first demonstration systems for the technology at 1.5 megawatts, 10 MW, and 100 MW.

The company has 44 projects completed or under construction, with a total contract value of more than CNY 5bn. To realize its commercialisation and distribute shares, the technology was priced at about CNY 1.85bn.

ZGT claims its capacity under construction - actual and planned - exceeds 2,000 MW - which makes it number one in China for CAES and number two overall in new energy storage. The company has obtained 20 international patents, with more than 400 published papers.

Carbon Neutrality has become a popular investment theme in China. Several leading private equity investors have teamed up with strategic partners to launch carbon neutrality funds, including Sequoia Capital China, CICC Capital, and IDG Capital. Most recently, Primavera Capital Group launched a CNY 10bn fund.

Hillhouse Capital Group has also established a climate change investment team and is expected to launch a fund.

• Tweet  
• Facebook  
• LinkedIn  
• Google plus  
• Save this article  
• Send to  

• Topics
• Greater China
• Early-stage
• Technology
• Cleantech
• China
• Gaorong Capital
• Legend Star
• Cleantech