Waste Knot Energy strikes £132m deal with Komercon
Waste Knot Energy, an innovative fuel manufacturer that offers pellets made from dry waste materials as a sustainable alternative to fossil fuels, has partnered with international supply management company Komercon.
Under the terms of the agreement, which is worth approximately £132m, Waste Knot Energy will supply 3.6m tonnes of pellets over the next five years to Komercon, which has its head office in the Netherlands, giving Komercon the ability to close long term supply agreements for their partners.
Waste Knot Energy’s pellets are ideal for high-energy-use industries, such as producers of cement, steel, energy and bricks. Comprising commercial and industrial waste such as wood, paper, card and non-chlorinated plastics, they reduce waste going to landfill or ending up in oceans.
Waste Knot Energy is building eight production plants across the UK, which will source biomass such as fibre packaging and wood from local waste streams. The first, in Middlesbrough, is almost ready and will start receiving waste as early as May this year.
Dr Matt Goodwin, Waste Knot Energy’s Sales Director, said: “We’re delighted to sign this supply agreement at such an early stage. Komercon committing to taking pellets from all eight plants justifies the confidence we have that waste can be diverted from landfill and converted into high quality fuel pellets that can be used to generate power and heat in place of fossil fuels, benefiting both the environment, and the businesses that use them.”
The pellets are cheaper than traditional fuels such as coal or pet coke and have a high energy content, amplifying these savings. They are also relatively clean to burn, reducing carbon emissions and helping to fight climate change.
John Bouterse, Senior Partner at Komercon, added: “We are convinced that with this deal, both parties will strengthen their positions into this global energy transition phase in which we are currently in. Alternative fuels will get a more prominent position into making this world a fossil fuel free economy. In this way we will be contributing to a significant CO2 emission reduction for our future generations. We are very proud that Waste Knot Energy has chosen Komercon as their strategic partner.”
Drax advances biomass strategy with Pinnacle acquisition
The Group’s enlarged supply chain will have access to 4.9 million tonnes of operational capacity from 2022. Of this total, 2.9 million tonnes are available for Drax’s self-supply requirements in 2022, which will rise to 3.4 million tonnes in 2027.
The £424 million acquisition of the Canadian biomass pellet producer supports Drax' ambition to be carbon negative by 2030, using bioenergy with carbon capture and storage (BECCS) and will make a "significant contribution" in the UK cutting emissions by 78% by 2035 (click here).
This summer Drax will undertake maintenance on its CfD(2) biomass unit, including a high-pressure turbine upgrade to reduce maintenance costs and improve thermal efficiency, contributing to lower generation costs for Drax Power Station.
In March, Drax secured Capacity Market agreements for its hydro and pumped storage assets worth around £10 million for delivery October 2024-September 2025.
The limitations on BECCS are not technology but supply, with every gigatonne of CO2 stored per year requiring approximately 30-40 million hectares of BECCS feedstock, according to the Global CCS Institute. Nonetheless, BECCS should be seen as an essential complement to the required, wide-scale deployment of CCS to meet climate change targets, it concludes.