Oman launches $200M clean energy fund with China’s Templewater

Future Fund Oman, a fund owned by the country’s sovereign wealth fund, the Oman Investment Authority, and Hong Kong-based alternative asset manager Templewater have established a clean energy fund worth $200 million.

The Energy Transition Fund, the first of its kind in Oman, will have an initial capital base of $200 million, including two $100 million commitments from FFO and Templewater. 

The fund will focus on renewable energy and its storage as well as clean molecules, e-fuels, green data centers and low-carbon transportation, such as electric cars.

The FFO was established in January 2024 to finance local projects and investors to stimulate the Omani economy. It manages 2 billion Omani rial ($5.2 billion).

Templewater focuses on equity investments and mid-market private equity buyouts in the decarbonization and energy transition sectors.

Why it matters: Oman, a country whose economy has historically been reliant on fossil fuels, is looking to diversify its revenue sources and increase its renewable energy contribution to at least 30% of its electricity generation by 2030 to meet climate transition targets. The country has committed to achieving net zero emissions by 2050 and is looking to launch more renewable energy projects.

Know more: China, a major clean energy player, has growing investments in the Omani renewable sector, particularly in solar and wind power. Among them is a $564 million investment by China’s JA Solar in April in a solar farm being built in the Sohar Freezone in the Al Batinah North governorate.

Also in April, China’s Shanghai Electric Wind Power Group signed a deal to build a $200 million wind turbine factory in Duqm, an industrial port city in central Oman that sits on international shipping routes.

Last July, Chinese firm Drinda announced it would invest $700 million in Oman’s first solar photovoltaic factory, which is expected to churn out up to 10 gigawatts of TOPCon solar photovoltaic cells annually.