Resonance Asset Management (‘Resonance’), the infrastructure investor focused on renewable energy and water infrastructure, announces an expansion in the scope of Resonance’s industrial water infrastructure investment strategy, as deployed in Resonance’s first industrial water infrastructure fund: Resonance Industrial Water Infrastructure Limited (“RIWIL”) (now closed for subscription).
Resonance’s updated industrial water infrastructure strategy will continue to target private equity and debt investment opportunities to develop, build, upgrade, and own mid-scale water infrastructure assets, such as water treatment, water supply and zero-liquid-discharge plants, in order to service co-located industrial clients that maintain material water usage requirements.
The UN predicts a 40% shortfall in freshwater resources by 2030 while global water demand is predicted to increase 55% by 2050[1] and thereby a plethora of corporations such as Microsoft, Facebook, Google, BP and Gap are pledging to become “water positive” – a commitment to replenish more water than used in direct operations. This will involve the continued development of water infrastructure for reuse, restoration, and cooling to conserve scarce water resources[2].
Resonance’s industrial water infrastructure investment mandate will expand beyond developing and building industrial water treatment plants to include co-located and co-deployed sustainable infrastructure opportunities that support Resonance’s industrial partners in reducing emissions, water usage and unrecycled waste output. These adjacent circular economy infrastructure assets include: behind-the-meter solar and bioenergy generation, and complementary battery storage and energy management systems; industrial heat recovery; sustainable industrial water cooling systems; recovery of metals, chemicals and organic fertilizers from waste streams; water to green hydrogen production etc.
Resonance’s expanded investment strategy will enable it to serve industrial partners that are increasingly under pressure to meet sustainability goals by governments, shareholders, regulators, and customers, while simultaneously facing rising costs, physical shortages, and regulatory tightening. Investors in Resonance’s industrial water infrastructure investment programme will own a highly diversified and global portfolio of income-generating water and energy infrastructure assets.
Nick Wood, CEO & Founder, Resonance Asset Management commented:
“Resonance’s expanded Industrial Water Infrastructure Investment Strategy will enable our industrial partners to reduce energy, water and resource costs, increase resilience and improve ESG metrics. Investing in circular economy infrastructure technologies adjacent to water treatment and water recycling plants is critical to sustainably mitigate resource constraints and the risks associated for our industrial and institutional clients.”
Resonance has a strategic distribution arrangement with investment management business, Fidante, to provide a range of support services encompassing fundraising and distribution, operational, and financial management services.
[1] United Nations Report, https://www.un.org/sustainabledevelopment/water-action-decade/
[2] The Guardian, https://www.theguardian.com/environment/2021/oct/14/water-positive-pledge-corporations
