Swiss trader and ship operator Gunvor Group has outlined its commitment to the energy transition, with big investments lined up.
The group's owner and chief executive, Torbjorn Tornqvist, has revealed the company wants to spend the equivalent of 10% of its net equity on green power solutions over the next couple of years.
The company's net worth is not known, but revenue was $75bn in 2019.
In an interview with Energy Intelligence posted to the Gunvor website, Tornqvist said the group is looking "very closely" at renewables and sees plenty of opportunities.
"There is no silver bullet to the climate change issue," he added. "Many solutions are needed."
Gunvor has already stopped trading coal and has bought two biofuel plants in Spain.
Tornqvist said about 50% of its trading relates to energy transition commodities, including biofuels, natural gas and LNG.
But the boss believes carbon capture is needed to meet zero-emissions goals, "given the reality that hydrocarbons will still be a necessary part of the future energy mix".
The group is also interested in battery, solar and wind power.
Excited about hydrogen
"Power trading and related investments will be more important for Gunvor as we go forward. There is also a lot of excitement for hydrogen right now, and if there is success with it, it stands a good chance to be commoditised," Tornqvist said.
Gunvor has shut down its two crude units at the Rotterdam refinery and is focusing on processing biofuels there.
As a part of these processes, it is also producing hydrogen.
Gunvor owns or operates more than 100 vessels.
The trader has profited from booming rates as tankers were booked for storage contracts in 2020.
Tornqvist said the perfect storm for tankers seen earlier this year, as a result of an Opec oil glut and the pandemic demand collapse, will not be seen again any time soon.
"It is very hard to see this combination of circumstances hitting the market again in the foreseeable future," he added.
Record results
The CEO said the group's second quarter results were its best ever, without giving financial details.
"Market conditions since July have been more challenging than during the first half, and we have adjusted our trading accordingly. Earnings are back to 'normal' expectations," he added.
Tornqvist said the company is managing a "sizable" fleet of LNG ships, and the sheer volume of its gas trading creates "substantial optionality" in the spot market.
"We believe the LNG market will grow for years to come. In our view, it is an important piece of any future energy mix, vis-a-vis the energy transition," said the CEO.
Gunvor made a net profit in 2019 of $381m.
