VH Global Sustainable Energy Opportunities is investing $61m (€52m) to buy two operating terminal storage sites on the Texas Gulf Coast as its first investment since its initial public offering.
The London-listed investment company advised by Victory Hill Capital Advisors has also committed further capital to develop and expand the sites before the end of the year.
VH Global said it will be partnering with the newly formed Motus Energy to operate and expand the two operating terminal storage assets with a view to displacing highly pollutive fuel sources produced in Mexico.
The terminals to be acquired will serve as a distribution point for clean, low sulfur fuels into the Mexican power and transportation markets. The terminals will be used for the export of domestically produced high sulfur fuel oil from Mexico to the US, a fuel product that contains as much as 2-4% sulfur.
Anthony Catachanas, CEO of Victory Hill Capital Advisors, said: “The project will help materially reduce the environmental and health threats that high sulfur fuels have on the natural habitat and human health.
“By reducing the availability of high sulfur fuel oil for domestic consumption in Mexico and displacing it with cleaner less pollutive products, VH Global aims to help reduce SO2, CO2 and NO2 emissions by over 85%, particularly in large urban areas around the country.
“This displacement programme is central to supporting the Mexican government in achieving its Paris Accord targets, and this remains the mission of VH Global and Victory Hill.”
Michael Gruener, CEO at Motus Energy, said: “We are delighted to partner with Victory Hill on this strategic project on the Texas Gulf Coast. We have worked with the Victory Hill team in the past in trying to uncover terminal infrastructure positions in South Texas.
“We see an excellent opportunity to support the displacement of pollutive fuels in the Mexican fuels market with cleaner products. In our view, this is key to supporting the Mexican government achieve its carbon emissions targets.”
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