China National Energy Storage raises $143m
Zhongchu Guoneng Technology (ZGT), also known as China National Energy Storage, has raised CNY 1bn (USD 143m) in Series A funding led by a China Development Bank Capital-managed fund and Xinda Kunpeng Equity Investment Management.
Other investors include Legend Star, CAS Star Venture Incubator, CMB International Capital, Tsinghua Holdings Capital, Puhua Capital, Xinding Capital, Zhejiang Provincial Energy Group, Guangxi Union AMC, CCBT Private Equity Fund, and Shenzhen Guosheng Investment.
Tsinghua Holdings Capital led a CNY 320m pre-Series A round for ZGT last year.
The company focuses on compressed air energy storage (CAES). The process is like inflating a balloon using electricity. When the outlet is open, compressed air rushes out, powering the generator and producing electricity. Advantages of the technology include relying on air, which is natural and low-cost, no geographical constraints such as the location of pumped storage power stations, relatively short construction periods, and long usage life cycles.
Compressed air technology was invented in the 1940s but uptake was slow due to conversion rates of just 40%-50%. China is making meaningful progress on efficiency. Energy conversion rates on ZGT’s large-scale projects of 100 MW can reach as high as 70%.
Founded in 2005, ZGT’s 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.
ZGT claims to have built the world’s first demonstration systems for the technology at 1.5 megawatts, 10 MW, and 100 MW. It has several large projects of 100 MW-300 MW under construction. Total capacity under construction – actual and planned – exceeds 4,000 MW, according to a statement.
Carbon neutrality has emerged as a key investment theme on the back of Beijing announcing plans to reach peak carbon usage by 2030 and achieve net-zero greenhouse gas emissions by 2060.
Solar and wind power supply is weather-dependent and can be unpredictable, making it unsuitable for direct input into electricity grids. Consequently, energy storage has emerged as an area of interest.
Recent funding rounds for energy storage companies include a CNY 600m Series A for WeView and a CNY 700m Serie sB for JD Energy.
More on Greater China
Latest News
Asian GPs slow implementation of ESG policies - survey
Asia-based private equity firms are assigning more dedicated resources to environment, social, and governance (ESG) programmes, but policy changes have slowed in the past 12 months, in part due to concerns raised internally and by LPs, according to a...
Singapore fintech start-up LXA gets $10m seed round
New Enterprise Associates (NEA) has led a USD 10m seed round for Singapore’s LXA, a financial technology start-up launched by a former Asia senior executive at The Blackstone Group.
India's InCred announces $60m round, claims unicorn status
Indian non-bank lender InCred Financial Services said it has received INR 5bn (USD 60m) at a valuation of at least USD 1bn from unnamed investors including “a global private equity fund.”
Insight leads $50m round for Australia's Roller
Insight Partners has led a USD 50m round for Australia’s Roller, a venue management software provider specializing in family fun parks.