Commodities trading group Trafigura is advancing several green hydrogen projects and investing in solar power and battery storage after booking record H1 profits on the back of higher prices and trading volumes.

Trafigura’s net profit for the first half of 2022 was $2.7bn, up by 27pc against the same period last year.

The company is progressing plans to deploy a 1GW electrolyser in Denmark to fuel trucks and other heavy land-based transport, says CEO Jeremy Weir.

It is also developing up to 250 green hydrogen retail refuelling stations in Austria, Denmark and Germany together with Houston-headquartered Phillips 66, the owner of Jet-branded stations.

In Australia, the company is progressing a study to develop a commercial-scale green hydrogen facility at metals company Nyrstar’s Port Pirie site. And in Norway, Trafigura is part of a consortium with German developer Hy2gen and investment firm Copenhagen Infrastructure Partners to produce green ammonia for the shipping sector. That project is expected to be operational in 2027, according to Weir.

$2.7bn – Trafigura H1 2022 net profit

During the first half of the financial year, Nala Renewables, Trafigura’s joint venture with Australia-based investment firm IFM Investors, acquired a large portfolio of solar projects in Chile and a further four projects to construct battery energy storage systems in the US.

“We continued to grow our power, renewables and carbon trading operations, and to invest in projects to support the energy transition,” says Weir.

The CEO’s bullish stance on the transition comes despite an uncertain outlook for the company’s core energy and commodity markets amid the war in Ukraine and a global economic slowdown.

“Looking ahead, we see no let-up in the challenging market conditions. Global supply chains remain disrupted, and the geopolitical situation will continue to be turbulent,” says Weir.

Tightness in commodity markets is the result of a sustained period of underinvestment in supply, which will need to be addressed to keep the energy transition on track.

“Significant investment will be required to produce, process and transport energy, minerals and metals to meet future needs and support the ongoing energy transition,” adds Weir.

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Author: Stuart Penson