Energy company Vitol and Low Carbon, a UK-based private investment company have launched a new fund VLC Renewables, with an initial allocation of €200m.
This fund will focus on investing in European renewable energy generation projects. Initially, the fund will target investments in both onshore and offshore wind.
VLC Renewables will invest in projects which are in various stages of development cycle including late stage development, construction and operation.
The Jersey-based fund will build on Low Carbon’s expertise in renewables and Vitol’s understanding of the energy markets and commodity flows. The initial funding has been committed by Vitol and the investment opportunities may be offered to third parties, Vitol stated.
Low Carbon CEO Roy Bedlow said: “We are very pleased to close this new Fund. Partnering with Vitol, one of the largest energy companies in the world, will enable us to drive scale in the investment and development of clean energy.”
“At its core, Low Carbon is committed to tackling climate change and reducing carbon emissions through its long-term investments into the green infrastructure space. We firmly believe it is possible to provide all the energy we need through renewable sources, and this fund will help us further our ambition.
“The market has a good mix of proven low carbon technologies and we are seeing strong deal flow for investments across our target sectors. We look forward to working with Vitol in identifying and closing new green infrastructure investments.”
Low Carbon, a privately-owned investment company, invests into both renewable energy developers and projects across a range of renewable energy technologies.
In the UK solar sector, the company has funded more than 320MW capacity of projects.
Vitol Investments’ Simon Hale said: “By 2025 almost 27% of European electricity will be generated from wind and solar. As a major participant in Europe’s power markets and as a significant investor in energy infrastructure worldwide, Vitol is keen to build a portfolio of renewable investments to complement its existing activities.”