Trafigura to invest in 2 GW of renewables projects within 5 years
Trafigura Group Pte Ltd, one of the world’s leading independent commodity trading companies, has formed a new company to invest in a series of solar, wind and power storage projects globally.
The new company, Nala Renewables, has an ambitious target to build a portfolio of renewable energy projects with a cumulative capacity of two gigawatts to be operating, in construction or in late stage development, within the next five years. Nala Renewables is a joint venture with global institutional fund manager IFM Investors, extending the two firms’ existing relationship through the Impala Terminals joint venture, created in 2018.
Nala Renewables will identify, build and operate projects that produce renewable energy in markets in which Trafigura already operates – primarily in Europe, Asia and certain emerging markets. In addition to developing greenfield projects, the company will selectively pursue opportunities to acquire assets or companies at varying stages of development that fit the investment profile of the portfolio.
The business will also build and operate projects adjacent to the Trafigura Group’s mining, port and smelting infrastructure assets worldwide and the renewable energy generated will be used to power some of those facilities. Trafigura will contribute around 250 MW of projects under early stage development to the venture and provide a long-term offtake agreement to some of the renewable assets, on market terms.
“As highly experienced infrastructure investors, IFM Investors are an excellent partner for this ambitious and timely endeavour,” said Jeremy Weir, executive chairman and CEO of Trafigura. “The energy transition is driving the need, but also provides the opportunity to make strategic, long-term investments in renewable energy. The investments will provide synergies for our new Power and Renewables trading division which is going to become a significant pillar of our trading activity over the next few years and beyond and builds on our capabilities and understanding of other energy markets.”
“We look forward to continuing the successful partnership with Trafigura and tackling the energy transition together,” said Kyle Mangini, global head of Infrastructure at IFM. “This joint venture is an important step in our strategy to reduce the carbon impact of our investments.”
An initial team of 15 professionals is being recruited, supported by renewables expertise from Trafigura and IFM Investors, with the expectation that the team will grow as the portfolio requirements evolve.