Oil trading heavyweight forms renewables arm
The Trafigura Group, a giant trader of oil and other commodities, is forming a new company to invest in renewables and energy storage projects worldwide.
Driving the news: Nala Renewables is a joint venture with the fund manager IFM Investors. They hope to develop 2 gigawatts worth of projects over the next five years.
Why it matters: "As the world shifts away from fossil fuels, big oil and gas traders are starting to reposition their businesses and are looking to invest in more sustainable energy sources," notes the Financial Times, which first reported the move.
- It's hardly just traders. Huge drilling services companies like Schlumberger have been launching new clean energy divisions and investments.
How it works: The new company will look to build and operate renewables projects in markets where Trafigura is already active, notably Europe, Asia and some emerging markets, they said.
- The joint venture will also develop projects next to Trafigura's holdings in mining, port and infrastructure in order to directly provide some of them renewable power, the announcement states.