DXT Commodities S.A., Duferdofin Nucor S.p.A. and FERA Fabbrica Energie Rinnovabili S.r.l. announce the structuring of the first Corporate Wind Power Purchase Agreement (PPA) in Italy.
The electricity, amounting to approximately 200 million kWh, will be generated by a new wind farm that FERA is currently building in northern Italy and will be purchased through a 7 year fixed price PPA by DXT Commodities, who will also sell it to the steel mills of Duferdofin Nucor over the same period.
Thanks to this structure, the wind farm will be able to sustain itself without receiving State incentives. In this way FERA’s renewable asset will rely on a fixed remuneration on every kilowatt hour produced and Duferdofin Nucor will cover itself from the risk of possible hikes in the prices of power, which represents a material cost item for its mills.
Cesare Fera (President of FERA) commented: “We are glad to have concluded this power supply agreement with DXT. The contract enables the wind farm (which uses turbines provided by ENERCON) to enter into operation and start increasing the renewable generation capacity in Italy, thus reducing CO2 emissions by almost 15’000 tons per year. The agreement fits within the development plan that we have pursued for years: generating renewable energy to save the environment, which as Greta Thunberg also reminds us, is an objective that can no longer be delayed.
On the transaction Nicola Stricchiola (Head of Power Trading di DXT Commodities) declared: “In the current environment where new renewable investments don’t benefit of State subsidies, PPAs represent the only possible answer to the challenging growth targets of renewable energy that have been set both at national and international level.
We are very pleased to have cooperated with FERA and Duferdofin Nucor to achieve this goal and we are already working to replicate the structure on other projects, but always together with carefully selected partners”.
Antonio Gozzi (Chairman of Duferdofin Nucor) also stated: “Within the steel sector we are very sensitive to environmental aspects. Such collaborations enable us to provide a meaningful contribution to the system, acting as catalysts for the development of non-subsidized renewable energy, which represent a great way to secure a long term fixed price. We are pleased to be forging the path as pioneers in this new market and we look forward to serving as a model for the entire industrial sector in Italy.”
DXT Commodities S.A. (formerly DufEnergy Trading) is a Swiss trader operating internationally and specialized in energy related commodities. Market leader in the offtake of renewable power in Italy, with over 3 GW of installed capacity managed, DXT’s aim is to cooperate with investors in the renewable sector, dispatching the electricity produced and maximizing its value on the market thanks to constant investments in technologies developed in-house and a team of analysts, traders and weather forecasters, capable of optimizing the power generated by each plant.
Duferdofin – Nucor S.r.l. is the result of a strategic alliance between two of the most important iron and steel global players, Duferco Group and Nucor Corporation. Today, Duferdofin-Nucor is an outstanding benchmark for production of beams and long products in Italy, Europe and North Africa. The Company, headquartered in San Zeno Naviglio, Brescia province, counts 4 production sites in San Zeno Naviglio, Giammoro, Pallanzeno and San Giovanni Valdarno and covers complete production chain: from liquid steel through finished products.