The 67-acre London based estate, with a development of offices, homes, restaurants and retail outlets, is looking to make the jump to green gas, to reduce its carbon footprint.
Optimised Energy were commissioned to identify zero carbon gas supply options available to the Kings Cross estate, in an effort to decarbonise the heating and hot water being supplied to commercial, retail, and residential occupiers.
A deal has subsequently been agreed between Metropolitan King’s Cross (the operator of the energy centre) and Crofthead Biogas, which will see 20,000 tonnes of carbon emissions eliminated. This arrangement commits Crofthead to supply 110,000 MWh of green gas – including Green Gas Certificates – via a virtual green gas supply agreement to the estate.
Optimised Energy were responsible for structuring the contract and overseeing the trading, risk management, and balancing mechanism between the entities, using a novel contracting and financial approach.
Following the deal, Steve Kellet, Sustainability Manager for Argent, wrote:
This is an exciting and significant step for King’s Cross and its journey to zero carbon. We are proud that we’re now able to serve our customers with green energy while keeping energy tariffs the same. We know that the UK faces a significant challenge in providing heating for homes and businesses while also being able to deliver on its commitments to decarbonise, and we hope this will encourage more investment in the green gas sector.
Optimised Energy have been critical in this process for us – they really understood our requirements and showed great perseverance to source this first-of-a kind-deal. It’s an agreement that’s unfamiliar with many in the industry so had to show a lot of perseverance to find the right partners and take a number of stakeholders on a journey to get them familiar with the process.”
Cian O’Donnell, Head of Client Services, Renewables at Optimised Energy:
The decarbonisation of the electricity sector has largely dominated the headlines to date. However, as full electrification of all energy requirements is not always feasible, green gas offers both an important and niche opportunity for the UK to decarbonise.
To ensure maximum transparency and financial certainty for the renewable producer in a volatile energy market, this agreement followed a road less travelled to include both the green gas commodity and associated certificates.”
The project allowed for multiple areas of the business to work in tandem, including our Optimised Procurement, Optimised Bureau, and Optimised Renewables services, all reinforcing Optimised Net Zero.