Trafigura's Investment Opportunities: Exploring Potential Avenues

Trafigura, a leading global commodities company, has a wide range of investment options to maximise its market position. The company has a diverse portfolio, including oil and petroleum products, shipping and marine logistics, and metals and mining assets. To optimise its position, Trafigura could consider investing in renewable energy and supporting the development of low-carbon technologies and fuels. The company has already made strides in this direction with its renewables and hydrogen investments, as well as its carbon removal projects. Furthermore, Trafigura's joint ventures, such as Nala Renewables, which focuses on renewable energy projects, and its acquisition of Greenergy, a supplier and distributor of transportation fuels, demonstrate its commitment to expanding its market presence while maintaining a responsible risk profile.

Metals and mining assets

Trafigura, a leading global commodities company, has a portfolio of investments in metals and mining assets. These investments are aligned with the company's expertise in logistics, physical trading, and its global network.

One notable investment is Nyrstar, an international producer of critical minerals and metals, which are essential for a low-carbon future. Nyrstar has a market-leading position in zinc and lead, with operations in Europe, the US, and Australia. This investment aligns with Trafigura's focus on sustainability and responsible practices, as these metals are crucial for the transition to a greener economy.

Additionally, Trafigura has invested in the Lobito Atlantic Railway, a 30-year concession to operate a 1,300km railway across Angola, up to the border with the Democratic Republic of Congo. This railway provides a faster route to market for minerals and metals produced in the Congolese Copperbelt. The upgraded railway line not only facilitates the transportation of resources but also contributes to the region's development by bringing in vital goods and supporting commercial activities.

Furthermore, Trafigura has a joint venture with global fund manager IFM Investors called Impala Terminals. Impala Terminals offers global trade facilitation for commodities by providing reliable and efficient access to international markets. With a network of over 45 strategically located assets and operations in 29 countries, Impala Terminals provides critical storage and logistics infrastructure services to energy and dry bulk customers worldwide.

These investments in metals and mining assets demonstrate Trafigura's commitment to optimising complex supply chains and connecting producers and consumers efficiently, reliably, and responsibly.

Renewable and hydrogen investments

Trafigura, a leading global commodities company, has expressed interest in renewable and hydrogen investments. The company has committed to sustainable practices and reducing the environmental impact of its activities. In line with this, Trafigura has made the following investments:

MorGen Energy

MorGen Energy is a leading developer of large-scale green hydrogen ecosystems, aiming to establish hydrogen as a cornerstone of Europe's energy transition. The company provides integrated solutions, from large-scale production facilities to the distribution of hydrogen and refuelling stations. MorGen Energy's projects address diverse regional needs, empowering industries and communities to meet their renewable energy targets.

Nala Renewables

Nala Renewables is a global power and renewable energy joint venture formed in 2020 by Trafigura and IFM Investors. Nala Renewables aims to build a portfolio of renewable energy projects with a cumulative generative capacity of four gigawatts by 2025. The company already owns and develops assets in Europe, Latin America, and the United States.

Nyrstar

Nyrstar is an international producer of critical minerals and metals, such as zinc and lead, which are essential for a low-carbon future. Nyrstar's operations, including mining and smelting, are located in Europe, the United States, and Australia.

Puma Energy

Puma Energy is a global energy company that supplies emerging markets. Its downstream business segments include fuels, aviation, lubricants, and bitumen. Puma Energy has a wide reach, with nearly 2,000 retail sites and a presence at over 100 airports. Its infrastructure business includes a network of more than 80 storage terminals.

These investments by Trafigura demonstrate its commitment to renewable and hydrogen energy sources, contributing to a more sustainable future.

Carbon removal projects

As a leading global commodities company, Trafigura has made a public carbon dioxide removal commitment as a founding member of the First Movers Coalition. The company has committed to purchasing at least 50,000 tons of durable and scalable net carbon dioxide removal credits by the end of 2030. These credits will be generated through advanced carbon dioxide removal technologies.

Trafigura is investing in carbon removal projects that benefit from scale and strong governance. These include the Brújula Verde project in Colombia, which focuses on landscape restoration on degraded lands, and the Delta Blue project in Pakistan, which is the world's largest mangrove forest restoration project.

The company is also investing in renewable energy projects and technologies to facilitate the transition to a low-carbon economy. This includes joint ventures such as H2Energy Europe and Nala Renewables.

Additionally, Trafigura is active in developing carbon markets and offers a range of products and solutions to help organisations reach their low-carbon objectives. The company provides carbon credits to clients, either as part of a bundled carbon offering or on a standalone basis, to meet their requirements in terms of registry, type, vintage, and origin.

Through these investments and commitments, Trafigura is contributing to global efforts to reduce emissions and achieve net-zero targets.

Logistics and storage

As a leading global commodities company, Trafigura has a wide range of investments in logistics and storage to support its business. The company has a global network that spans more than 50 locations and works with producers and customers in over 150 countries.

One of the key investments of Trafigura in logistics and storage is its joint venture with global fund manager IFM Investors, called Impala Terminals. Impala Terminals has a network of more than 45 strategically located assets and operations in 29 countries, providing critical storage and logistics infrastructure services to its customers. This includes energy and dry bulk customers, for whom Impala Terminals facilitates the global trade of commodities by offering reliable and efficient access to international markets.

In addition to its joint ventures, Trafigura has made direct investments in logistics and storage infrastructure. For example, the company is part of a consortium that has been awarded a 30-year concession to operate the 1,300km Lobito railway, which runs across Angola to the border with the Democratic Republic of Congo. This investment will improve the efficiency of mineral and metal transportation from the Congolese Copperbelt to the market by providing a quicker western route. The upgraded railway line will also support the region by facilitating the transportation of essential goods and resources, as well as fostering business development and commercial activity along the route.

Trafigura's investments in logistics and storage are aligned with its commitment to sustainable practices. The company aims to reduce the environmental impact of its activities and to use natural resources efficiently and responsibly. It invests in renewable energy and supports the development of low-carbon technologies and fuels. Trafigura's logistics and storage investments are designed to optimise complex supply chains, ensuring that critical resources are supplied where and when they are needed, while also improving the efficiency, security, and sustainability of global supply chains.

Oil and petroleum products

As a leading global commodities company, Trafigura has a diverse portfolio of investments in oil and petroleum products. The company is the second-largest oil trader in the world and has built or purchased stakes in pipelines, storage terminals, and other energy infrastructure.

One notable investment in this sector is its subsidiary, Puma Energy, which operates in more than 20 countries, primarily in Central America and Africa. Puma Energy supplies a network of nearly 2,000 service stations and is present at over 100 airports. It also has a network of over 80 storage terminals, facilitating the storage and distribution of oil and petroleum products.

In February 2013, Trafigura invested $800 million in the Australian energy market. This investment included the acquisition of more than 250 petrol stations, two oil import terminals, and five fuel depots by Puma Energy. This move capitalized on the rising demand and refinery closures in Australia.

Additionally, Trafigura has a joint venture with the Russian investment group United Capital Partners, through which they acquired a 24% stake in Essar Oil. Essar Oil owns India's second-biggest private refinery and a network of 2,700 filling stations.

The company has also invested in Greenergy, a leading supplier and distributor of transportation fuels. Greenergy supplies around a quarter of the UK's road fuels and operates in other markets such as Ireland, Canada, and internationally.

Trafigura's investments in oil and petroleum products are part of its broader strategy to supply, process, and transport physical commodities and energy globally. The company's expertise in optimizing complex supply chains and its global infrastructure and logistics network contribute to its position as a leading player in the energy industry.

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