Geneva-based Gunvor, one of the world’s biggest independent oil traders, said today it would invest at least half a billion dollars in renewables over the next three years. Accordingly, the Company is preparing for a shift in the world’s energy mix.
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Gunvor on its new clean energy push
Today, Geneva-based independent oil trader Gunvor announced it would invest at least half a billion dollars in renewables over the next three years. Therefore, the Company said this decision is to prepare for a shift in the world’s energy mix.
Besides, the move by Gunvor shows how big trading houses making considerable investments in the oil market want a more significant role in the energy sources of the future.
Therefore, the Company set up a new subsidiary called Nyera — or New Era in Swedish. For instance, the subsidiary will focus on renewable power and carbon capture and storage projects. Also, on alternative fuels, including ammonia and hydrogen.
Furthermore, the unit will have a minimum of $500m to back new projects. Nevertheless, Gunvor’s co-founder and chair Torbjorn Tornqvist said he expected a “substantially higher number” if it could attract co-investors. Therefore, “we expect the phone to start ringing,” he said.
An opportunity to leverage
In fact, the Company trades about 2.7m barrels of crude and oil products a day. In that sense, they have no plans to give up trading hydrocarbons. However, they are conscious of the need to prepare for the looming shift to clean energy. Therefore, they must harness renewable projects.
In this sense, “we are not abandoning oil trading,” said Tornqvist. Thus, “I think it is important to grow in both our traditional businesses. Also, having an eye on the future and spend some of our capital to invest in that future, so we are ready.”
Hence, the Company also expanded in natural gas and other low-carbon transition fuels such as liquefied natural gas (LNG). Moreover, they now make up half its trading activity and stop trading coal.
Finally, the firm also said on Tuesday it was targeting a 40 percent reduction in its operational emissions by 2025. Besides, it is assessing the indirect scope three emissions in its supply chain. In brief, the Company says by 2027, the fleet of its Clearlake Shipping subsidiary will be 100 percent “eco-vessels.”