Towngas’ Peter Lee sees opportunities in Saudi Arabia’s green economy, seeks roles in sectors like energy technology and storage
- Peter Lee’s gas distribution firm Towngas and family-office unit Full Vision Capital will be investment vehicles for green-economy ventures
- Hong Kong start-ups, waste biomass conversion company EcoCeres and battery maker EnerVenue, are finalising strategic partnerships with Saudi players
Hong Kong business magnate Peter Lee Ka-kit is betting on Saudi Arabia’s green economy as his power-to-property conglomerate rolls out partnerships, cooperation, and investment in sectors such as energy technology and energy storage.
Lee’s gas distribution firm Hong Kong and China Gas (Towngas) and family- office unit Full Vision Capital, will be the main investment vehicles for these initiatives, a source close to Full Vision told The Post, as Saudi Arabia seeks to achieve net-zero carbon emissions status by 2060, with plans to invest up to one trillion riyals (US$266.40 billion) to generate “cleaner energy”.
As first steps, two Hong Kong start-ups, EcoCeres and EnerVenue, backed by Full Vision Capital and Towngas respectively, are finalising strategic partnerships with local players and are also studying the feasibility of setting up manufacturing bases in the Middle East’s biggest economy. Lee is co-chairman and managing director of Henderson Land Development, one of Hong Kong’s leading developers founded by his father, Lee Shau-kee.
EcoCeres specialises in the conversion of waste-based biomass into biofuels, biochemicals and biomaterials, and produces commercialised hydro-treated vegetable oil, sustainable aviation fuel, and cellulosic ethanol.
EnerVenue focuses on developing new nickel hydrogen batteries, which can be used in solar photovoltaic, wind energy, microgrid and rechargeable piles.
Lee’s expansion plans follow his recent visit to oil behemoth Saudi Aramco’s headquarters, where he discussed LNG (liquified natural gas) imports, hydrogen energy, energy storage, carbon capture, energy tech and energy digitalisation, with the company’s executive vice-president and chief technology officer, Ahmad O. Al-Khowaiter. Towngas, is Hong Kong’s dominant provider of piped gas with 3,600 kilometres of pipelines that serve millions of households and businesses.
Towngas offshoot profits by turning waste oil into green fuels
Saudi Aramco, which has invested in EnerVenue, is the world’s largest oil exporter and the third most valuable company globally, with a market capitalisation of US$2.1 trillion. Its latest quarterly earnings revealed a net income of US$31.9 billion which was down nearly a fifth from a year ago as falling oil prices weighed on the bottom line.
The company, named among the world’s top 50 innovative companies by the Boston Consulting group, is studying the possibility of a follow-on offering after its 2019 IPO.
In February, Hong Kong Chief Executive John Lee Ka-chiu visited Saudi Arabia and the United Arab Emirates seeking business partnerships between Hong Kong and the Middle East. Six bilateral deals between Saudi Arabia and Hong Kong were signed, including an agreement between the Saudi stock exchange operator, Saudi Tadawul Group, and Hong Kong Exchanges and Clearing to increase cooperation in financial technology, cross listings, and environmental, social and governance concerns.
Saudi Arabia is driving a major economic diversification under its Vision 2030 agenda, with an eye on reducing oil dependence and leveraging other high-growth industries to boost its economy, create jobs and attract private investment. It is investing billions to diversify into sectors such as tourism, to launch massive infrastructure projects and developing its financial and private sectors.
Last month, ratings agency Fitch upgraded Saudi Arabia’s sovereign credit rating to “A+” from “A”, saying there were indications of improvement in the economy’s oil dependence.
