Case Study:
This is one of the largest paper mills in the Nordic region. From its origin, the mill manufactured paper primarily from recycled materials, and the basic idea is still alive today. Every year the paper mill manufactures thousands of tones of paper and cardboard from 100% recycled paper collected from all over the country.
CUSTOMER:
INDUSTRY:
LOCATION:
LARGE PAPER MILL
MANUFACTURING
NORDICS
Electricity Price Risk Management
Customer Overview
Although the mill has made many changes, including becoming ISO 50001 certified, and invested heavily in modernization of production facilities, paper production is still an energy intensive process. And thus, the paper manufacturer needed an electricity procurement and risk management adviser who would help to continuously keep an eye on energy prices and be ready to respond quickly to market fluctuations.
Challenge
World Kinect moved the paper mill to an active price risk management and to trading directly on the exchange to take advantage of electricity market price volatility - a dynamic approach that delivered results.
World Kinect Solution
World Kinect worked together with the customer to develop an active approach that addressed the high electricity consumption at the plant and market fluctuations.
Once the procurement and hedging parameters were finalized, World Kinect energy experts traded and hedged independently, within the agreed mandates, when the signals in the market are right for them.
There is full transparency with comprehensive online reporting through World Kinect award-winning online customer portal, and the opportunity to continuously review the developments and changes in the mill’s portfolio.
Allowing World Kinect to manage the electricity portfolio freed up the mill’s internal resources, giving them the chance to focus more on their core business.
With minimal internal resources, the customer secured the best possible return based on their agreed strategy - a strategy that has resulted in savings of up to 15%.
Business Impact
OUTSOURCED MARKET
MONITORING
15%
SAVINGS IN ENERGY COSTS
Kinect Energy Group has created an optimal solution that allows us to continually follow the market and take an active role, with minimal internal resources.”
COMPANY CHIEF EXECUTIVE OFFICER
Source energy
and fuel
TRUSTED
ENERGY
PARTNER
Minimize price
and operational
risk
At the same time, the customer has access to a local energy expert to answer any and all questions about the energy markets.
At the same time, the customer has access to a local energy expert to answer any and all questions about the energy markets.
