German multinational conglomerate corporation, Siemens and one of the world’s leading companies in the field of renewable energy, Desert Technologies have launched a joint venture ‘Capton Energy’ to develop and invest in solar and smart infrastructure in the Middle East, Africa and Asia.
Headquartered in Dubai, Capton Energy, which aims to build up a portfolio of investments in projects with an aggregate capacity of more than 1 gigawatts (GW), will support projects offering clean, reliable, and affordable energy in areas that need it most. Capton is led by Mr. Umer Ahmad, who joined as Chief Executive and Chief Investment Officer in January 2022.
Siemens, through its financing arm Siemens Financial Services (SFS), and Saudi Arabia-based Desert Technologies are joint shareholders in Capton. The company will primarily target investments in existing and greenfield solar power projects typically in a range of 20 to 100 megawatts (MW) of electricity generation capacity.
Capton will benefit from the partners’ ability to supply technology and expertise to facilitate the development of new solar facilities. The platform will also offer third-party investors the opportunity to participate in the energy transition journey.
“Capton Energy is already advanced in assembling a pipeline of solar-themed investments and is in progressive discussions to launch the inaugural fundraising. With Siemens and Desert Technologies as strategic partners, and the exceptional team we are bringing together within Capton, we are confident that we have the complete toolkit to bring an optimum blend of development, investment and technological capabilities, so we can meet the growing needs for solar energy in our target markets.”
“Solar power plays a critical part in the global energy transition. The launch of Capton sets the stage to help drive the expansion of more sustainable and flexible energy systems across the Middle East, Africa and parts of Asia and we’re looking forward to jointly building this platform alongside Desert Technologies,” said Mr. Steffen Grosse, Head of Equity Finance for SFS.
Demand for solar energy is surging in the Middle East, Africa and Asian nations. In the Middle East alone, total installed capacity for solar power generation more than quadrupled from 2016 to 2020, according to data from the International Renewable Energy Agency.
“We are eager to work with Capton and Siemens to back projects and drive positive change in line with our ESG ideals. Such efforts to fully optimize the potential of the sun and technologies such as sustainable mini-grids and smart distributed energy systems will anchor our ideals and embody positive impact,” said Mr. Nour Mousa, the Founder of Desert Technologies.