i(x) Net Zero PLC (AIM:IX.) said it will invest a further US$1.5mln cash into an existing Latin America renewable energy partnership.
The energy transition and sustainability investor said it is making an initial payment of US$500,000 into Enphys Management Company (EMC), with the rest of the sum made up of 10 equal monthly payments from July.
Focused on pursuing renewables and energy transition opportunities in Latin America, EMC is a partnership between i(x) Net Zero and Latin America Investment Group (LAIG), a business development and investment group that is focused on Latin America.
EMC has a direct stake in NYSE-listed Enphys Acquisition Corp, a SPAC targeting renewable energy businesses in Latin America, as well as a stake in Enphys Acquisition Sponsor, the sponsor company of the SPAC.
The initial payment to EMC will increase i(x) Net Zero's holding by 3.5% to 14.5%, with a new agreement giving it the right to appoint one director to EMC's board, and could eventually up its stake to 25% by making additional investments or by sourcing investments for its platform companies.
Chief executive Steve Oyer said: "We are excited to collaborate with the EMC and LAIG teams and believe there are many opportunities to foster the next chapter of their strong track record of success in Latin America. EMC has tremendous potential to become the regional champion of energy transition and serve the increasing demand for renewable energy from a growing population in a sustainable manner."