Danske Commodities has been chosen to provide optimisation services for a Danish power-to-x plant.
SPK, the European Energy (51%) and Mitsui (49%) joint venture, has selected Danske Commodities as its electricity optimisation partner for the Kasso facility in southern Denmark.
The PtX plant has the capacity to produce 32,000 tonnes of e-methanol a year, when it becomes operational by the end of 2024.
Under the agreement, Danske Commodities will provide electricity balancing and optimisation of the plant by managing the consumption of power needed to produce e-methanol.
The Kasso PtX facility is located next to the 304MW Kasso solar farm, also owned by SPK.
Danske Commodities has been balance responsible party (BRP) for the solar farm since 2022 and this role will now include the PtX facility as Danske Commodities will manage both the production from the solar farm and the consumption of the e-methanol plant.
When the solar farm produces more power than the PtX facility needs, the surplus power will be made available to other consumers and sold in the market.
In turn, when the PtX facility needs more power than the solar farm can produce, the needed power will be purchased in the spot market in the most cost-efficient hours.
“Partnering with Danske Commodities allows us to leverage their expertise in energy trading to ensure that the Kasso facility operates at maximum efficiency when it comes online later this year,” said European Energy chief executive Knud Erik Andersen.
“This allows us to take a significant step forward in our mission to deliver sustainable energy solutions on a large scale.”
Danske Commodities chief executive Helle Ostergaard Kristiansen added: “Utilising 20 years of power trading experience and a fully automated algorithmic setup, Danske Commodities has become a leading optimiser of renewables and flexible energy assets.
“Today, we add the first Power-to-X facility to our growing portfolio, and we look forward to continuing our strong collaboration with European Energy and Mitsui.”
Through the optimisation agreement, SPK and Danske Commodities optimise the energy production and consumption of the Kasso assets while providing “much needed” flexibility to the energy market.