Commodities trading group Trafigura and investment management firm IFM Investors have formed a new joint venture, Nala Renewables, to invest in solar, wind and power storage projects.
The two companies already have the Impala Terminals joint venture for liquid, bulk and container cargo, which was created in 2018 and now operates 28 facilities in 20 countries worldwide, including at ports and inland. The new joint venture will extend that existing relationship.
‘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,’ says Kyle Mangini, IFM global head of infrastructure.
Nala Renewables has a target to invest in a portfolio of 2 GW worth of renewable energy projects, which will be operational, under construction or in late stage development within five years. The JV will not only develop greenfield projects, but look to acquire assets under development. It will focus on projects in markets where Trafigura already operates, mainly Europe, Asia and some emerging markets.
The joint venture will also build and operate renewable energy projects to supply power to Trafigura’s existing mining, port and smelting assets. Trafigura will contribute existing early stage development projects amounting to around 250 MW to the joint venture and provide offtake agreements on market terms. The joint venture will recruit 15 professionals initially and expects the team to grow.
‘As highly experienced infrastructure investors, IFM Investors are an excellent partner for this ambitious and timely endeavour,’ says Jeremy Weir, Trafigura CEO. ‘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.