The Singaporean-domiciled oil trading company Trafigura is the latest oil concern to start investing in renewables with a bid to acquire or create 2GW green energy and storage.

In a partnership with fund manager IFM Investors the new joint venture called Nala Renewables and will have a war chest of $2bn to invest, acquire or create renewal projects portfolio across Europe, Asia and some emerging markets within the next five years. IFM has previously worked with Trafigura through the Impala Terminals joint venture, created in 2018.

Trafigura will also build and operate projects adjacent to the group’s mining, port and smelting infrastructure assets worldwide and the renewable energy generated 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.

Jeremy Weir, Executive chairman and CEO of Trafigura said: “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.”

The move follows significant refocus from BP on renewables and fellow trader Vitol as operations dependent on oil scrabble to realign themselves for a rapidly shifting world where oil will be less valuable and less in demand.

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