Kyos energy consulting
Experts in energy modeling, consulting and training!
KYOS offers specialized advise on trading and risk management in energy markets. Our expert team has years of experience in quantitative modelling and advisory services in commodity markets. Our sophisticated solutions are developed to support decision making, investment proposals and risk calculations. KYOS has a clear focus on the following areas: Products, Consulting and Training.
Visit www.kyos.com for more information about Kys energy consulting or this topic.
Highlights
- Kyos Consulting - News & Highlights
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Article: Gas Storage Trading
A decade of 'Rough' storage trading results
KYOS benchmarked various trading strategies in the UK NBP gas market More...
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Barcelona, 5-6 October 2010
NEW: KYOS Course on power generation assets
KYOS will lead a 2 day training on valuation and hedging techniques for power generation assets More...
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New York, 1-2 December 2010
NEW: KYOS Course on gas flexibility instruments
KYOS will lead a 2 day training on valuation of gas storages and swing contracts More...
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Article: Gas Storage Trading
Industries
Substantial impact
KYOS CCA advisory services are most valued in sectors where energy or commodity costs have a substantial impact on the overall business performance. Examples of segments solutions include:- Construction
Construction companies have a diversified
commodity risk portfolio. Road building companies have a large metal, bitumen, asphalt
and diesel exposure. The house building companies are exposued to steel, bricks, glass and cement.
For the production of (Portland-) cement clinker is required, which is created at high temperatures (> 2000˚C). Analysis shows that approximately 3000 MJ is required to produce 1 ton of Cement, while 0.75 ton of Carbon is emitted during this process. A good price formula therefore incorporates coal, gas, carbon and electricty.
For the production of (Portland-) cement clinker is required, which is created at high temperatures (> 2000˚C). Analysis shows that approximately 3000 MJ is required to produce 1 ton of Cement, while 0.75 ton of Carbon is emitted during this process. A good price formula therefore incorporates coal, gas, carbon and electricty.
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Brick, cement,
aggregates, concrete, gypsum
Cement manufacturers bear risks on
coal, carbon, natural gas, oil and electricity. The price of bricks and/or
cement can be expressed as an energy component. Compared to cement, which is a
highly coal related production process, brick prices are more affected by natural
gas prices. This is affected by the production process, where claybricks are heated up to 1300 ˚C. An effective price formula will give a large weight to the gas component.
- Packaging
Packaging companies for
the beverage industry use aluminium or steel cans. Linking the aluminium component in
the cans to the LME (exchange) enables hedging on the exchange.
- Glass
The production of glass is an energy
intensive production process. More than 70% of the product exists of SiO2 (siliciumoxide),
which in fact is clean sand. Selling glass based on an energy related formula will increase transparancy and reduce risks. Glass can be hedged with natural gas, carbon and electricity.
- Chemical
The chemical industry is a large user of natural
gas, steam and various oil distillates. Phenol is a solvent derived from crude oil and phenol prices are related to crude.
Naphtha is also an intermediate feedstock which
is traded in financial markets. When a product (like phenol) is not traded in the financial market, the pricing can be based on a related prodcut. To stay with phenol: this is priced on benzene, and benzene can be traded (benzene pricing is done with Platts' fixings).
- Paper and pulp
The paper- and pulp production is a highly energy
intensive process. The energy requirements can be hedged with gas, electricity and carbon.