British renewable energy investment company Low Carbon and global energy trader Vitol announced Tuesday the closing of VLC Renewables, a Jersey-based fund focused on generating significant investment in renewable energy assets across Europe.
With an initial €200 million ($234.7 million) allocation committed by Vitol, the Fund will invest in European renewable energy generation projects, according to a joint press release.
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.
Investment opportunities may be offered to third parties, the statement said.
Roy Bedlow, chief executive at Low Carbon, said partnering with Vitol would enable them 'to drive scale in the investment and development of clean energy'.
'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,' he said.
Bedlow noted that the market had 'a good mix of proven low carbon technologies' and they were seeing 'a strong deal flow for investments across our target sectors'.
'We look forward to working with Vitol in identifying and closing new green infrastructure investments,' he said.
According to Vitol's Investment Director Simon Hale, almost 27 percent of European electricity will be generated from wind and solar by 2025.
'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,' Hale said.
Based in London, Low Carbon is a privately-owned investment company committed to the development and operation of renewable energy power production including solar, wind, waste to energy, combined heat and power, energy storage and energy efficiency.
Vitol is an energy and commodities company whose primary business is the trading and distribution of energy products globally. The company trades over seven million barrels per day of crude oil and products and, at any time, has 250 ships transporting its cargoes, according to the press release. Its revenue in 2017 was $181 billion.
By Hale Turkes