28 Sep Trafigura commences $2 billion push into renewables with new joint venture
Global independent oil trader Trafigura has signalled its intention to move into renewable energy through the formation of a joint venture – Nala Renewables – with Geneva-based IFM Investors.
Under the partnership, Trafigura expects to invest around US$2 billion in new solar, wind and power projects as well as acquiring assets and companies by 2025, focusing on markets where it already operates including Europe, Asia and other emerging markets.
Jeremy Weir, Trafigura executive chairman and chief executive, said that power and renewable energy could emerge as a third pillar to its business (alongside metals and oil and gas), due to the pace of electrification around the world.
“Power and renewable energy is going to increase rapidly and I think this is going to be a very significant part of our business,” Weir told the Financial Times. “Can it be as large as the other two pillars…my view is, why not? I think this could be a very, very significant business.”
Nala Renewables plans to develop a 2GW portfolio within five years, with projects to be built and operated adjacent to Trafigura Group’s mining, port and smelting infrastructure assets worldwide. The renewable energy generated will be used to power some of those facilities, the company said.