Power
With a wealth of experience in individual energy sectors, there is sound business logic in connecting those strengths in order to allow Vitol to address the power industry.
Our Power offering is taking shape, developing physical and financial positions throughout Europe. This augments our existing Power activity in the US, where we are active in trading power forwards and options in the eastern states.
There’s a natural synergy with our existing activities in Natural Gas, Coal and Emissions, and by combining these functions we will be able to offer a full range of management solutions to power plant owners and developers, utilities and large industrial users.
Take, for example, an investor in a power plant who wants to lock in a fixed rate of return. Vitol could propose a solution whereby we take the power the plant generates in exchange for fuel supply and emissions credits. The investor gets the comfort of a margin over a defined term, and is protected from volatility on power prices and the fuels needed to produce it.
• Our power offering has a natural synergy with our activities in Natural Gas, Coal and Emissions. Combining these functions provides a choice of solutions to utilities.