Vitol Group, the world’s largest independent oil trader and investment firm Low Carbon are launching a new EUR 200 million renewable fund in partnership to invest in the European wind energy sector. Reportedly, the New Jersey-based VLC Renewables fund aims to generate considerable investment into the regional renewable energy assets, focusing on offshore and onshore wind farms that are at various stages of the development.
According to industry experts, the energy sector is undergoing a fundamental shift toward low carbon emission, from electricity generation to transportation. And with Vitol’s latest investment effort, the company will be joining a string of oil majors that are making moves into the renewable energy industry.
Roy Bedlow, Chief Executive, Low Carbon, revealed in a company statement that the partnership with one of the largest energy companies, Vitol will enable it to drive scale in the investment as well as development of clean energy. He further added that Low Carbon is committed to reduce carbon-emissions and tackle climate change through its long-term investments into clean energy & green infrastructure space.
Reports reveal that Vitol has initially committed EUR 200 million, but it is quite plausible for further investment opportunities to be open for third parties.
According to Roy Bedlow, the energy industry as on today has a good mix of proven low carbon emission technologies and Low Carbon is predicting strong flow for investments across its target sectors.
By 2025, more than 27% of electricity across the European continent will be generated from solar and wind energy sources, cites Vitol’s Simon Hale. He further added that as a prominent player in the Europe power market and as a major investor in energy infrastructure worldwide, Vitol is more than eager to build a portfolio of renewable investments that will complement its present activities.