Vitol, an energy and commodities company whose primary business is the trading and distribution of energy products, is investing EUR 200 million (USD 234.2 million) in renewable energy generation projects in Europe.
Vitol and Low Carbon, a privately-owned investment company committed to the development and operation of renewable energy power production, announced the closing of a Jersey-based fund, VLC Renewables (www.vlcrenewables.com), which is focused on generating significant investments in renewable energy assets across Europe.
“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,” said Simon Hale, head of investments at Vitol.
The fund will initially target investments in both onshore and offshore wind and will invest in projects at various stages of the development cycle, including late-stage development, construction and operation.
The fund builds on Low Carbon’s considerable expertise in renewables and Vitol’s understanding of energy markets and commodity flows. Low Carbon invests into both renewable energy developers and projects across a range of renewable energy technologies including solar, wind, waste-to-energy, combined heat and power, energy storage and energy efficiency.
While the initial funding has been committed by Vitol, investment opportunities may be offered to third parties in the future.
“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,” said Roy Bedlow, chief executive, Low Carbon.
“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.”