Case Study – Power Purchase Agreement Between Motive Fuels and Seacon Terminals

Published on 04 May 2023

Background

Motive Fuels Ltd. is a leading green hydrogen energy generator and owns hydrogen fueling stations across the UK. To provide green hydrogen, Motive Fuels required a secured green energy supply through a PPA that is traceable for their facility in Birmingham. Seacon Terminals Ltd. has solar panels located in Northwest, Kent. The company was looking forward to selling excess energy generated for a fixed revenue.

Challange

The main challenge for Motive Fuels is to obtain a green energy supply that is transparent and cost-effective. Seacon Terminals was also working on securing a steady and long-term revenue for their solar energy. Both companies were interested in entering into a Power Purchase Agreement (PPA), but they were in different regions, which made it difficult to establish a direct connection.

Solution

RE24 Ltd. was engaged by both Motive Fuels and Seacon Terminals to facilitate the execution of a long-term PPA. RE24 team worked closely with both companies to understand their specific needs and identify potential solutions.

After conducting a comprehensive market analysis, RE24 proposed a sleeving PPA, which would enable Motive Fuels to purchase renewable energy from Seacon Terminals. The sleeving PPA involved Octopus Energy Ltd. in purchasing the energy from Seacon Terminals and selling it to Motive Fuels. Further, RE24 enabled energy traceability for both parties through their Green Energy Marketplace.

RE24 played a critical role in negotiating the terms of the PPA, ensuring that both companies received a fair deal and energy traceability. RE24 team managed the logistics of the agreement, including the legal and financial aspects of the transaction.

Results

As an initiation on contributing for a decarbonised UK energy grid, RE24 launched their first energy solution. Seacon Terminals and Motive Fuels successfully executed a PPA. The agreement allowed Motive Fuels to secure their energy bills from market fluctuations, allowing almost 35% savings in energy during the first quarter of 2023. Seacon Terminals was able to generate a steady stream of revenue by selling its excess energy capacity.

Motive Fuels was guaranteed hourly-matched energy supply and energy traceability through RE24. Half-hourly granular certificates are being issued to Motive Fuels through blockchain technology. With RE24, Motive Fuels will be open to more energy asset owners to match their energy consumption and will be entitled for increased cost savings, while Seacon Terminals will be able to access to more potential customers who will be on-the-lookout for green energy as well. 

“RE24 worked with Motive Fuels to understand our power requirements, identified a suitable renewable generator and worked with us to agree a power purchase agreement. The most valued support we received from RE24 was the negotiation with the energy supplier – there is so much specialist knowledge required to set up PPA contracts and the team at RE24 handled it brilliantly. I don’t think we would have sourced genuinely green power without them.”

– James Cross, Commercial Director at Motive Fuels Ltd.

For more information on RE24 services and insights, visit RE24 Website or RE24 Insights

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