Siemens and Desert Technologies have formed a partnership to build and invest in solar and smart infrastructure in Africa, the Middle East, and Asia.
Capton Energy intends to amass a portfolio of investments in projects with a combined capacity of more than one gigatonne (GW).
It will support projects that provide clean, reliable, and affordable energy in areas where it is most needed.
Capton Energy is headquartered in Dubai, United Arab Emirates, and is led by Umer Ahmad, who assumed the role of chief executive and chief investment officer in January 2022. Ahmad is a well-known expert in the energy and infrastructure financing industries, with over 21 years of experience as an equity investor, lender, and advisor in developed and emerging markets, having led businesses and teams at a number of high-profile organisations including Barclays, Deloitte, SNC-Lavalin, and Equitix.
Capton is co-owned by Siemens, through its financing arm Siemens Financial Services (SFS), and Saudi Arabia-based Desert Technologies.
The company's primary investment focus will be on existing and greenfield solar power projects with capacity ranging from 20 to 100 megawatts (MW). Capton will benefit from the ability of the partners to supply technology and expertise to facilitate the development of new solar facilities. Third-party investors will also be able to participate in the energy transition journey through the platform.
"Solar power is critical to the global energy transition," said Steffen Grosse, SFS's head of Equity Finance. "The launch of Capton lays the groundwork for the expansion of more sustainable and flexible energy systems across the Middle East, Africa, and parts of Asia, and we look forward to working with Desert Technologies to build this platform."
Desert Technologies is a holding company for solar PV and smart infrastructure, with a focus on manufacturing and long-term investments. The company, based in Jeddah, has completed more than 40 solar projects in 22 countries.
"Solar power allows places without reliable energy networks to bypass the legacy infrastructure common in developed countries and benefit from sustainable, clean, and affordable power," said Nour Mousa, founder of Desert Technologies.
"We are excited to collaborate with Capton and Siemens to support projects and drive positive change in accordance with our ESG ideals." Such efforts to fully utilise the sun's potential, as well as technologies such as sustainable mini-grids and smart distributed energy systems, will anchor our ideals and embody positive impact."
"Smart infrastructure powered by the sun is the key to sustainable development," said Khaled Sharbatly, Desert Technologies' Group Chief Investment Officer and Capton's Board Member.
"They have the potential to change for the better every aspect of our lives, acting as enablers of new social and economic paradigms, from energy equality to clean transportation and electric mobility, based on the integration of renewables, storage, and digital technologies."
Solar energy is in high demand in the Middle East, Africa, and Asia, where there is plenty of sunshine. According to data from the International Renewable Energy Agency, total installed capacity for solar power generation in the Middle East more than quadrupled between 2016 and 2020.
Efforts to bring sustainable electricity supplies to rural areas via off-grid and battery storage systems are helping to drive this growth, as more countries transition away from fossil fuels that contribute to global warming.
"Capton Energy is already well on its way to assembling a pipeline of solar-themed investments and is in advanced discussions to launch the inaugural fund raising," Ahmad explained.
"With Siemens and Desert Technologies as strategic partners, and the exceptional team we are assembling within Capton, we are confident that we have the complete toolkit to bring an optimum blend of development, investment, and technological capabilities, allowing us to meet the growing needs for solar energy in our target markets."