Energy trading company Danske Commodities has signed a power purchase agreement (PPA) with Cory Group for Riverside 1, one of the largest energy-from-waste (EfW) facilities in the United Kingdom.
Under the agreement, Danske Commodities will provide balancing, asset optimisation and route-to-market for Cory’s EfW plant Riverside 1, which is located on the Thames river in a part of London called Belvedere.
Every year the facility burns around 750,000 tonnes of non-recyclable waste collected in London. Its operation avoids waste to be landfilled and produces electricity. In 2020 Riverside 1 treated 782,000 tonnes of waste and generated 532,000 MWh of baseload electricity.
Riverside 1 burns non-recyclable waste
The deal marks the first EfW PPA for Danske Commodities, which will apply its trading expertise to provide balancing, asset optimisation and route-to-market for the energy generated from London’s waste, according to the Danish firm, owned by Norwegian oil company Equinor.
Danske Commodities has been doing business in the British power market since 2009 by providing services to energy generation firms such as wind farms and combined heat and power plants (CHPs).
The company said it currently has 7 GW of power generation assets under management in Europe.
Increased demand for energy service partners
“Signing a power purchase agreement with an experienced trading company like Danske Commodities provides us with access to the energy market and decreases our liquidity risk,” said Ben Butler, CFO at Cory.
According to Tor Mosegaard, VP and Head of European Power Trading at Danske Commodities, energy-from-waste is a win-win – it is a sustainable way to manage non-recyclable waste and it generates energy, which is needed now more than ever.
“We are seeing an increased demand for energy service partners with a proven track-record and a strong creditworthiness. As an experienced balancing and trading partner, backed by Equinor, we can meet the demand and do our part in optimizing Europe’s power markets,” Mosegaard added.