#Commodities Traders look to #GreenEnergy as they transition away from Hydrocarbons

Marco Dunand of Mercuria said he had long been a 'closet environmentalist'

Mercuria pledges half its investments to energy transition

June 15, 2021

Commodity traders that have reaped huge profits from the oil market in recent years now want to play a role in renewable energy.

Speaking at the FT commodities Summit in Lausanne, all the major traders reinforced their intention to continue to invest in Renewable Energy projects as they shift away from fossil fuels. 

Mercuria co-founder Marco Dunand: "within five years, 50 per cent of all investments are going to be for the energy transition. We have started and have invested well over $500m."

Russell Hardy, chief executive of Vitol, the world's biggest independent oil trader, said it aimed to put half of its investments in renewables and transitional energy, such as gas. The trading house has committed over $1bn in capital for renewable projects.

Torbjörn Törnqvist, Gunvor chair, said it was increasing its investments in power trading, existing renewable technology as well as decarbonisation technologies.

Trafigura last year announced plans to build or buy 2 gigawatts of solar, wind and power storage projects over the next few years through a joint venture with fund manager IFM Investors.

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"Every time the company invests into say an upstream [oil and gas] asset . . . we are going to have to put the equivalent money into the energy transition," Dunand said. 

Unlike some of its peers, which are primarily focused on physical oil trading, Mercuria has also pushed into financing, offering clients complex services more akin to those offered by investment banks. In 2014 it bought part of JPMorgan's physical commodities trading business to bolster its operations, particularly in power markets. 

Read the whole article on the FT here: Mercuria pledges half its investments to energy transition https://www.ft.com/content/06ea940a-2bfe-487a-8c50-5d8fcd402525

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