CARLYLE Group and Singapore’s sovereign wealth fund GIC made a “strategic investment” in Eneus Energy to support the company’s push to develop green ammonia projects.

The backing allows Eneus Energy to continue to develop global projects involving ammonia made using renewable energy, starting with the US and UK, the companies said in a statement that didn’t disclose the initial amount invested. The deal gives New York-based Carlyle and GIC the ability to invest more than US$3 billion in Eneus Energy’s projects in the next 5 years, according to Pooja Goyal, chief investment officer of Carlyle’s infrastructure group.

Green ammonia can be used to store and transport hydrogen produced using renewable electricity, making it useful in the fight to curb greenhouse gas emissions. As governments and companies worldwide grapple with the impacts of climate change from burning fossil fuels, investors including Carlyle and GIC are betting on technologies that aim to reduce emissions and support a transition to renewable energy.

“We’ve taken a very focused view on energy transition in the last few years,” Goyal said in an interview. “When we think about economically viable options to reduce carbon molecules, we think ammonia is the most viable option today.” BLOOMBERG