Coal, Biofuels and Freight Trading
Our Trading global unit is responsible for securing the coal to run E.ON's steam coal-fired power plant across Europe, as well as conducting third party transactions of both coal and freight globally.
The types of coal E.ON needs to run its power plant come from all over the world, including Europe, Russia, Colombia, South Africa, and the United States. To optimize its supply chain the Trading unit operates a fully integrated, global coal and ocean freight logistics business, from sourcing and storage, to transportation and risk management.
Improved risk management
Coal is influenced greatly by swings in the freight market, as well as by other commodities such as oil and economic developments in North America and Asia. The ongoing development of financial coal and freight trading capabilities on the back of its large physical position, coupled with E.ON's cross-market and cross-commodity expertise, improves our ability to better hedge financial risks associated with the coal and freight markets.
The types of coal E.ON needs to run its power plant come from all over the world, including Europe, Russia, Colombia, South Africa, and the United States. To optimize its supply chain the Trading unit operates a fully integrated, global coal and ocean freight logistics business, from sourcing and storage, to transportation and risk management.
Improved risk management
Coal is influenced greatly by swings in the freight market, as well as by other commodities such as oil and economic developments in North America and Asia. The ongoing development of financial coal and freight trading capabilities on the back of its large physical position, coupled with E.ON's cross-market and cross-commodity expertise, improves our ability to better hedge financial risks associated with the coal and freight markets.
- Around 20 million metric tons of coal sourced for own use per annum;
- Coal trading volumes increased by 30% in 2010 to 289 million metric tons, up from 223 million metric tons in 2009;
- E.ON operates a Responsible Procurement Policy.
