The largest oil company on the planet will be rebuilt at the mill

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Photo: Dado Ruvic / Reuters

The world’s largest oil trader Vitol Group have launched a Fund to invest in wind power, joining the strongest oil companies, which are thinking about the end of the hegemony of the oil market. About it reports Bloomberg.

Vitol intends to invest about 200 million euros ($234 million) through its division for renewable energy — VCL, together with the Low Carbon enterprise Ltd. “We see the challenge facing the electricity market and we will adapt our business model for the future,” said investment Director of Vitol Simon Hale.

Paris climate deal has prompted almost all countries to commit themselves for the development of renewable energy. According to forecasts of the international energy Agency, by 2020 the number of electric vehicles in the world will triple, resulting in the traditional oil and gas business will face the challenge of existence.

The Agency notes that in this case, Vitol follows the largest producers of oil companies such as Royal Dutch Shell, Total and BP, which have invested in the production and development of solar panels and batteries for electric vehicles. Moreover, Shell has invested in the creation of a wind farm offshore in the North sea.

Vitol revenues from the sale of oil are estimated at about seven million dollars per day, so 200 million investment in renewable is not very serious for a company. However, according to the Agency, is an attempt to diversify and explore new market, which could be a drop in the net profit of company in 2017 by 25 percent to $ 1.5 billion.

“We believe that wind will become a sought-after source of energy,” says Hale. Previously, the company has invested about 250 million pounds ($330 million) in energy storage, as well as the system of redistribution networks. To improve the efficiency of investments in renewable energy Vitol even hired former top-Manager Citigroup Andrew De Pass. In Vitol predict that by 2025, 27 percent of all electricity in Europe will develop sun and wind.

Video, photo All from Russia.

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