Actis to take controlling stake in Dubai-based Yellow Door Energy

Sustainable infrastructure investor Actis has agreed to acquire a controlling stake in Dubai-based Yellow Door Energy.

Actis is investing an undisclosed sum on behalf of the Actis Energy 5 fund to buy the leading distributed commercial and industrial solar platform in the Middle East and Africa.

Actis said it will apply its buy-and-build power strategy to scale the business and accelerate the growth of Yellow Door Energy which currently has around 200MW of secured production capacity.

Lucy Heintz, partner and head of energy infrastructure at Actis, said: “We’re delighted to be contributing to the Middle East and Africa region’s transition away from fossil fuels by deploying new solar PV technology, presenting an exciting opportunity to scale the business, and where we see a clear opportunity and large addressable market.

“Our strategy is to build the business into the region’s distributed solar sustainability leader.”

Shami Nissan, partner and head of sustainability at Actis, said: “We are very happy about our partnership with Yellow Door Energy which is helping customers across the Middle East and Africa transition to net zero and reduce fossil fuel emissions.”

Jeremy Crane, founder and CEO of Yellow Door Energy, said the investment from Actis, complemented by increased investments from current shareholders, Mitsui & Co, APICORP, and IFC, is an ”attestation to the success of our company”.

Tthe investment will enable the firm to scale geographically through both direct and M&A activities, Crane added.

Yosuke Matsumoto, GM of new downstream business at Mitsui & Co, said: “We are delighted to see Yellow Door Energy’s growth and contribution to the region’s green energy among the commercial and industrial sector, since our participation.

“We welcome the participation by Actis and believe this partnership will further accelerate the growth of Yellow Door Energy.”

Khalid Ali Al-Ruwaigh, CEO of APICORP, said: “As one of our earliest equity investments in the renewable energy space, Yellow Door Energy has demonstrated strong business growth over the past few years thanks to its strong leadership team and commitment towards innovation and advancing the energy transition.

”We believe having a reputable partner such as Actis will propel the company to the next stage of its growth. The additional backing is especially relevant today considering the growing urgency to meet decarbonisation goals and bolster the sustainability of the regional energy landscape.”

Lance Crist, IFC’s global head of infrastructure equity, said: “Our early investment in Yellow Door Energy is part of IFC’s global strategy of working with early-stage companies and promoting affordable, reliable and clean energy in emerging markets.

”We are proud to be a partner in Yellow Door Energy’s successful evolution as the company continues to grow from its home base of UAE and expand its footprint across the Middle East, Africa and other regions.”

To read the latest edition of the latest IPE Real Assets magazine click here.