Through the partnership, Tulum will provide RED with development funding and project capital and the initial commitment will be $26m.
RED develops, builds, and operates recycled energy projects in industrial locations in North America.
Tulum also aims to deploy about $300m in projects that RED will develop across North America in the next few years.
RED said recycled energy is produced through the reuse of waste energy from industrial processes, combined heat and power, waste heat/pressure recovery, and the beneficial re-use of manufacturing wastes.
Tulum Trust is a private equity firm that deploys capital into investments that generate impact and compelling returns from the low carbon economy.
RED also owns Turbosteam, a manufacturer of back-pressure recovery systems.
