Waste Knot Energy signs £132m pellet supply agreement with Komercon
Under the terms of the agreement, Waste Knot Energy will supply 3.6 million tonnes of pellets over the next five years to Komercon, which has its head office in the Netherlands, giving it the ability to close long-term supply agreements for its partners.
Waste Knot Energy’s pellets are ideal for high-energy use industries, such as producers of energy, steel, cement, and bricks. Comprised of commercial and industrial waste such as wood, paper, card and non-chlorinated plastics, the pellets reduce waste going to landfill or ending up in oceans.
The company is building eight production plants across the UK which will source biomass such as fibre packaging and wood from local waste streams. The first, in Middlesbrough, is almost ready and will begin receiving waste in May.
Dr Matt Goodwin, Waste Knot Energy’s sales director, said: “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.”
The pellets are cheaper than traditional fuels such as coal or pet coke, and have high energy content, amplifying savings. They are also ‘relatively clean’ to burn, reducing carbon emissions and helping to fight climate change.
“We are convinced that with this deal, both parties will strengthen their positions into this global energy transition phase which we are currently in,” said John Bouterse, senior partner at Komercon.
“Alternative fuels will get a more prominent position into 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 its strategic partner.”