Malaysian- based oil and gas company Petronas announced that its corporate capital venture arm, Petronas Ventures, recently invested in solar photovoltaic (PV) system startup SOLS Energy Sdn Bhd.
The startup that is also based in Kuala Lumpur, Malaysia is the leading solar installers for residential homes and are rapidly growing in the commercial sector. Founded in 2015 by chief executive officer Raj Ridvan, the solar energy startup aspires to future-proof the world through the power of technology and sustainable energy.
“Our mission is to connect people and businesses to real sustainable energy solutions. We believe solar PV system adoption is at an inflection point in Malaysia,” Ridvan said.
“We believe solar (PV) system adoption is at an inflection point in Malaysia, and with the Government’s regulation on Net Energy Metering and lower equipment cost, we see a huge potential market size in Malaysia and South East Asia,” he added.
This is Petronas’s second venture capital investment initiative that seeks to strengthen its commitment in the renewable energy space as a solutions partner, the firm said in a statement.
The fund transaction is expected to be completed by the end of July this year.
The investment in SOLS Energy is in line with Petronas’ Sustainability Agenda and the United Nations’ Sustainable Development Goals (SDGs) 4, 7, 8 and 13 focusing on the provision of quality technical education to youths, promotion of sustainable economic growth as well as reduction in greenhouse gas emissions through generation of clean energy, said the national oil and gas entity.
Petronas Ventures head Mohd Azli Ishak said: “We believe that this investment will complement Petronas’ New Energy business growth in the solar market, as the SOLS Energy team has the passion and determination to propel the sustainable industry.”
Petronas Ventures is a $350-million fund launched in October 2019, with an objective to make direct investments in areas such as industry 4.0, advanced materials and specialty chemicals and energy.
Petronas Ventures actively scouts for visionary entrepreneurs to solve critical problems in the industrial and energy space through breakthrough technology and innovative business models to support its business growth and sustainability agenda, with SOLS Energy itself a graduate of Petronas’ FutureTech Accelerator programme in 2019.
The new ventures will also support the then Ministry of Energy Science Technology Environment and Climate’s initiatives to reduce carbon emission intensity by 45 per cent per gross domestic product per capita by 2030, while achieving a low-carbon economy status by 2050.