Singapore-headquartered Trafigura Group, an international commodity company that trades in metals and energy, has joined hands with IFM Investors, a Swiss fund manager, to form Nala Renewables. (FT)
The move marks a huge shift in business focus for Trafigura. One of the world’s biggest independent oil traders, the company is looking to buy or build 2 GW of solar, wind, or power storage projects in the coming years to mark its entry into renewable energy.
Through Nala Renewables, Trafigura plans to invest approximately $2 billion by 2025.
“Power and renewable energy is going to increase rapidly and I think this is going to be a very significant part of our business,” said Jeremy Weir, executive chairman and chief executive, to the Financial Times. Indeed, he went so far as to describe the sector as the third pillar for Trafigura, alongside its metals and oil and gas businesses.
Nala’s beat will primarily cover Europe, Asia, and a few emerging markets. These are geographies where Trafigura already has a presence. Nala will produce about 250 MW for the JV through assets located close to ports, mines, and smelters owned by Trafigura.
The company’s pivot to renewables comes as global pressure mounts on commodity players to become more environment-friendly.
Later this year, it will declare plans for reducing its own emissions, as well as those from the products it sells. The latter are known as “Scope 3” emissions.
Read the FT article HERE.
Image Source: Trafigura