Oil company Vitol launches €200m renewables fund with Low Carbon

A new renewable energy fund has been set up with the help of a major oil broker.

Vitol, better known as a global distributer of crude oil, has partnered with the UK investment firm Low Carbon on the new clean energy fund.

Vitol has kick-started the project with a 200 million euro injection of cash. It will initially focus on funding onshore and offshore wind developments within Europe. The fund, called VLC Renewables, will draw on Low Carbon’s expertise in the field; the firm has funded 320 megawatts of solar power and has interests in wind, storage and energy efficiency.

Simon Hale, who handles investments at Vitol said: “By 2025 almost 27 percent 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.”

Vitol reportedly trades up to seven million barrels of crude oil and related products every day, but in recent years it has turned its attention to cleaner forms of energy. The partnership follows a joint venture with Low Carbon on a battery storage project across two sites in England. The project was run through Vitol’s combined heat and power company VPI Immingham, which it purchased in 2013.

Roy Bedlow Chief Executive at Low Carbon said: “We are very pleased to close this new Fund. 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”.

“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 added.