Oil and metals trader Trafigura today announced it is aiming to have 2 GW of renewables projects at some stage of development within five years.
The Singapore-based commodities company launched its Nala Renewables business along with Australian institutional investor IFM Investors and said it will use clean energy at some of the sites to help power its mining, smelting and port operations.
With Trafigura targeting solar and wind plants and energy storage facilities with the new business, Nala Renewables will start with around 250 MW of project capacity which its parent company has been developing.
The commodities group said the new unit would achieve its 2 GW target with a mixture of its own projects and acquisitions, with some of the greenfield assets to be sited near Trafigura operations which would then act as an energy offtaker “on market terms.”
The parent company said the renewables unit would operate in Europe, Asia and “certain emerging markets,” without elaborating further.
Trafigura executive chairman and CEO Jeremy Weir said: “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.”
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