Volkswagen invests in EU-backed energy transformation fund

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A caller logo of German carmaker Volkswagen is unveiled astatine the VW office successful Wolfsburg, Germany September 9, 2019. REUTERS/Fabian Bimmer

FRANKFURT, Nov 3 (Reuters) - Volkswagen (VOWG_p.DE) is expanding its greenish strategy by investing successful an EU-backed money to jointly backmost exertion firms successful the tract of vigor transformation.

The carmaker, which has committed to becoming c neutral by 2050, said connected Wednesday it had entered a strategical concern with EIT InnoEnergy and volition go a shareholder successful the EU-backed venture.

The determination is successful enactment with different steps by Volkswagen, which successful September unveiled plans to acceptable up its ain 300 cardinal euro ($348 million) task superior money to put successful decarbonisation projects and start-ups successful the field. work much

"The thought is simply ... to usage InnoEnergy arsenic an further mode to find absorbing enterprises and enactment them successful scaling up their concern models," said Jens Wiese, Volkswagen's caput of radical M&A, concern advisory and partnerships.

VW aims to go the world's largest seller of electrical vehicles by the mediate of the decennary and has outlined plans to physique six ample artillery compartment factories with partners successful Europe by the extremity of the decade.

EIT InnoEnergy has already invested 560 cardinal euros ($650 million) and holds stakes successful astir 300 groups, including Swedish artillery compartment shaper Northvolt, alloy task H2 Green Steel, and lithium miner Vulcan Energy Resources (VUL.AX).

Supported by the EU's European Institute of Innovation and Technology (EIT), EIT InnoEnergy funds start-ups and companies that are progressive successful the vigor modulation towards decarbonisation and distant from fossil fuels.

Volkswagen did not disclose the worth of the concern oregon the size of the involvement successful EIT InnoEnergy, whose owners besides see Schneider Electric (SCHN.PA), TotalEnergies (TTEF.PA), Engie (ENGIE.PA) and EDF (EDF.PA).

Volkswagen holds a 5th of Northvolt and, via its trucks portion Scania, has besides invested successful H2 Green Steel, whose backers see Mercedes-Benz (DAIGn.DE), Spotify (SPOT.N) laminitis Daniel Ek, and Northvolt co-founder Vargas Holding.

($1 = 0.8624 euros)

Reporting by Christoph Steitz; Editing by David Holmes

Our Standards: The Thomson Reuters Trust Principles.

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