French oil giant Total’s venture-capital arm has signed an agreement with Hubei High Technology Investment Guiding Fund Management, and Cathay Capital to launch an investment fund focused on the energy sector in China.

Total Energy Ventures and Hubei High Technology will each invest around 300m yuan ($50m) into the Cathay Smart Energy Fund. Following the first closing more partners are expected to join the fund which has a total capital target of over 1.5bn