Morgan Stanley alum Atwan plans to raise $600m for clean energy funds

Funds will invest in low-carbon energy, including renewable fuels and hydrogen production. (Shutterstock)
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  • Funds aim to invest in companies removing 500 millions tons of CO2 per year

RIYADH: VC Fuel plans to raise $100 million for its debut venture fund and intends to seek about $500 million for a separate infrastructure vehicle, Bloomberg reported citing a person with knowledge of the matter.

The firm was founded by Ahmad Atwan, a former Morgan Stanley managing director, to make wagers on clean energy and infrastructure.

The Houston-based company will invest in companies that help drive the transition to lower-carbon energy, such as renewable fuels, hydrogen, electric vehicles, carbon capture and storage, clean agriculture and sustainable manufacturing, among other areas. It will also invest in related infrastructure, Atwan said in an emailed statement.

“We aim to invest in companies that at scale can remove 500 million tons of carbon per year, which is roughly equivalent to 1 percent of global carbon emissions,” Atwan said in the statement.

“We believe this ambitious decarbonization goal goes hand in hand with making highly profitable, sustainable investments,” he said.