Waste Knot Energy signs 3.6 million tonne SRF pellet supply deal with Komercon
Waste Knot Energy (Holding) Ltd (Waste Knot Energy, a UK developer of solid recovered fuel pellets (SRF pellets) has announced that it has negotiated a strategic partnership agreement with the Netherlands-headed international supply management company Komercon B.V (Komercon). Under the terms of the agreement, which is worth approximately GBP132 million (≈ EUR 152.6 million), Waste Knot Energy will supply 3.6 million tonnes of SRF pellets over the next five years to Komercon.
According to a statement, Waste Knot Energy is building eight production plants across the UK. The first 250 000 tonnes per-annum capacity SRF pellet plant, which is being built in Middlesbrough, is almost ready and will start receiving waste in May this year.
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, said Dr Matt Goodwin, Sales Director at Waste Knot Energy.
Comprised of commercial and industrial dry waste such as fibre packaging, waste wood, paper, card, and non-chlorinated plastics sourced from local waste streams, the SRF pellets are ideal for high-energy-use industries, such as producers of cement, steel, energy, and bricks.
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.
The agreement gives Komercon the ability to close long-term supply agreements for its partners.
We are convinced that with this deal, both parties will strengthen their positions in this global energy transition phase which we are currently in. Alternative fuels will get a more prominent position in 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, commented John Bouterse, Senior Partner at Komercon.