UK/Switzerland – British investment company Low Carbon and Swiss energy and commodities company Vitol have closed the renewables fund VLC Renewables, which is focussed on generating significant investment into renewable energy assets across Europe.
With an initial €200m allocation, the Fund will invest in European renewable energy generation projects. It 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 expertise in renewables and Vitol’s understanding of energy markets and commodity flows. The initial €200m has been committed by Vitol, and investment opportunities may be offered to third parties.
“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,” Roy Bedlow, Chief Executive at Low Carbon, said. “The market has a good mix of proven low carbon technologies and we are seeing strong deal flow for investments across our target sectors.”
Simon Hale, who is responsible for investments at Vitol said: “By 2025 almost 27 per cent of European electricity will be generated from wind and solar.” He further acknowledged that as a major participant in Europe’s power markets and as a significant investor in energy infrastructure worldwide, it was essential for a company like Vitol to build up a portfolio of renewable investments to complement its existing activities.
Currently Vitol is said to trade up to seven million barrels of crude oil and related products every day, but for a few years now the company has also been looking at cleaner and more sustainable energy options. The new partnership has been preceded by a battery storage project across two sites in England where the Swiss company has cooperated with the Brits.
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