Commodity trader Trafigura Group has formed a new company to invest in solar, wind and energy storage projects globally.
Nala Renewables, a joint venture with global institutional fund manager IFM Investors, is aiming to have 2GW of projects operational, in construction or in late-stage development within the next five years.
The company 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.
It 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.
In addition to developing greenfield projects, Nala Renewables will selectively pursue opportunities to acquire assets or companies at varying stages of development that fit the investment profile of the portfolio.
An initial team of fifteen 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.
The partnership extends Trafigura and IFM Investors’ existing relationship through the Impala Terminals joint venture, created in 2018 to own and operate base metals terminals infrastructure in Mexico, Spain and Peru.
“As highly experienced infrastructure investors, IFM Investors are an excellent partner for this ambitious and timely endeavour,” said Trafigura executive chairman and CEO Jeremy Weir. “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 IFM global head of infrastructure Kyle Mangini. “This joint venture is an important step in our strategy to reduce the carbon impact of our investments.”