UAE's Amea Power secures $75m funding from SoftBank to boost regional projects

The capital raise is Amea's first external equity funding following years of being privately funded

Hussain Al Nowais, chairman of Amea Power, said the company is rapidly expanding and 'perfectly positioned to lead and accelerate the global race to net zero'. Photo: Amea Power

Amea Power, the Dubai-based renewable energy company, has signed a $75 million equity funding round from Japan's SoftBank Group, which it will use to enhance its operations across key geographical regions.

The all-equity round from the Tokyo-based firm is Amea Power’s first external equity funding following years of being privately funded by its founding shareholders, AlNowais Investments, the company said on Monday.

Several other international institutional strategic corporate and financial investors are also evaluating potential investments.

The funding will also pave the way for Amea Power and SoftBank Group to explore a mutual partnership.

Amea Power is looking to expand in the Middle East and South-East Asia, and CIS countries including Kazakhstan, Uzbekistan and Azerbaijan, it said.

SoftBank Group's debut investment in Amea Power is a “significant milestone”, as the Tokyo-based fund is a “cornerstone investor in the global energy transition”, Hussain Al Nowais, chairman of Amea Power, said.

“The funds raised will enable us to accelerate our strategic ambitions, materialise further projects in the power, water and green hydrogen sectors, and to continue to further expand our presence in target markets,” he said.

“Amea Power is rapidly expanding and perfectly positioned to lead and accelerate the global race to net zero.”

Countries around the world are racing to tap into renewable and alternative sources of energy, in line with international climate change and sustainability goals.

The Middle East and North Africa could obtain more than a quarter of its total primary energy supply from renewable sources by 2050, with the share of renewables in the power sector alone projected to hit 53, according to the International Renewable Energy Agency.

This would result in an emissions reduction equivalent to 1.1 gigatonnes of carbon dioxide per year, while also creating around 2 million jobs in the region, up from 542,000 in 2017, the Abu Dhabi agency said.

“As part of its commitment to economic and social development, Amea Power works closely with local stakeholders to establish programmes that advance local communities in proximity to our renewable energy projects,” the company said.

Amea Power has been active in the Middle East and Africa region, having been involved in energy projects to support economies and societies.

The funds raised will enable us to accelerate our strategic ambitions, materialise further projects in the power, water and green hydrogen sectors, and to continue to further expand our presence in target markets

Hussain Al Nowais,
chairman of Amea Power

In December, the company was awarded a contract for a $120 million solar photovoltaic project in South Africa. Amea Power is the majority shareholder in the 120-megawatt solar plant, which will sell electricity to state utility Eskom under a 20-year power purchase agreement.

In November, it secured projects in Egypt, including the development of a solar plant and wind farm in co-operation with Japanese and Dutch organisations, and a framework agreement with Cairo to develop a 1,000MW green hydrogen project for the production of green ammonia.

In Togo, the third phase of the Sheikh Mohamed bin Zayed Solar Power Plant – built by Amea Power and funded by the Abu Dhabi Exports Office – is now well under way, bringing 50MW of much-needed energy and which will be increased to 70MW by the end of 2023.

Amea Power was founded in 2016 and has significantly increased its investments in wind, solar, energy storage, green hydrogen and water desalination projects, as part of its long-term commitment to the global energy transition.

It currently has about 1.45GW in generating capacity in operation and under construction, and has a clean energy pipeline of nearly 6GW across 15 countries.