The new joint venture company will invest in solar, wind and power storage projects within the next five years

Trafigura

Nala Renewables is an extension of the partnership between Trafigura and IFM Investors. (Credit: Pixabay/Kenueone.)

Trafigura Group and IFM Investors have formed a new joint venture company Nala Renewables to invest in 2GW of renewable projects.

The joint venture company will invest in solar, wind and power storage projects within the next five years.

Nala Renewables is an extension of the partnership between Trafigura and IFM Investors, which formed Impala Terminals joint venture in 2018.

The company will identify, build and operate projects in the regions, where the commodity-trading company already operates, primarily in Europe, Asia and some emerging markets.

Furthermore, it will also pursue opportunities to acquire assets or companies at several stages of development.

Trafigura executive chairman and CEO Jeremy Weir said: “As highly experienced infrastructure investors, IFM Investors are an excellent partner for this ambitious and timely endeavour. 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.”

Trafigura will contribute around 250 MW of projects to the new venture

The new company will also build and operate projects next to Trafigura’s mining, port and smelting infrastructure around the world.

Renewable energy produced from the projects energy will be used to power some of those facilities of the company.

Trafigura has also agreed to contribute nearly 250MW of projects under early stage development to the venture.

In addition, it will also offer a long-term offtake agreement to some of the renewable assets, on market terms.

IFM infrastructure global head Kyle Mangini said: “We look forward to continuing the successful partnership with Trafigura and tackling the energy transition together.

“This joint venture is an important step in our strategy to reduce the carbon impact of our investments.”