What we do
We access power station capacity (by supplying fuels in exchange for power) – transport power cross-border – and operate as a power trader.
We also have the flexibility to offer products that mimic power station dynamics and economics.
There is a natural synergy with our existing activities in natural gas, coal and carbon emissions, and by combining these functions we are able to offer a full range of multicommodity management solutions to power plant owners and developers, utilities and large industrial users, generators and suppliers, new market entrants and hedge funds.
Where we do it
Vitol has developed 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. We are also active across the UK, France, Germany and the Benelux countries, with a reach that is broadening to extend into Italy, Switzerland and Scandinavia.
How we do it
Take, for example, an investor in a power plant who wants to lock in a fixed rate of return. Vitol might 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 fuel needed to produce it.
Our experience as an oil, gas and coal trader gives us a rare and profound understanding of the relationship between energy and fuel. We leverage this understanding to generate efficiencies, predict trends and develop effective long term risk management solutions.
We are independent of any utility or finance house, we look to build and sustain long term relationships whenever possible and we have the liquidity, assets and reach to structure bespoke deals.
Power trading
Case study:
268 TWh traded by Vitol in last 12 months in UK, France & Germany