Case Study:
NATS is the UK’s leading provider of air traffic control
services. Each year they handle 2.5 million flights and 250 million passengers in UK airspace. In addition to managing all upper airspace in the UK, they also provide services throughout Europe, the Middle East, Asia, and North America.
CUSTOMER:
INDUSTRY:
LOCATION:
NATS
AIR SERVICES
United Kingdom
Sourcing Renewable Energy Certificates
Customer Overview
NATS has committed to net zero emissions by 2035. So, in addition to seeking a new flexible supply contract for electricity and natural gas to meet the needs of their sustainability strategy, NATS also wanted to investigate the cost of purchasing renewable energy certificates for their Scope 2 emission reporting.
Challenge
World Kinect’s energy specialists carried out an extensive procurement process, analyzing competitive tenders of 10 pre-agreed 3rd-party suppliers to optimize the costs and renewable energy aspects of the contract.
World Kinect Solution
On the electricity side, World Kinect’s partnership helped NATS reduce contractual costs by more than £84,000 and to secure REGOS renewable energy certificates without any increase on current electricity supply costs. In addition, NATS’ new supplier proposed real-time half hourly (HH) data, at no extra cost, which offered additional reassurance against potential metering problems.
For natural gas, a green gas option was also negotiated. Although NATS had feared a large increase in gas costs, we were able to secure a fixed contract with pass-through non-energy costs and improved terms that presented NATS with a saving of just over £61K.
World Kinect also provides NATS with hedging and risk management services and hosted price risk mgt workshops with internal NATS stakeholders to review and optimize the purchasing strategy further.
Regular market updates and monitoring are also a key part of our risk management services. NATS teams are able to review all reported transactions and market information via our World Kinect Online customer portal.
The Renewable Energy Guarantees of Origin certificates (REGO) made NATS’ electricity supply contract carbon neutral and reduced their Scope 2 emissions.
The green gas option also made NATS’ Scope 1 natural gas operations carbon neutral.
In total, World Kinect saved NATS almost £472K against their benchmark targets for trading.
Business Impact
24/7 VISIBILITY OF USAGE, COST, & EMISSIONS
SUSTAINABLE RENEWABLE
ENERGY SOLUTION
World Kinect have been helping us with our energy procurement and portfolio since 2007. Our work together puts us in a better position to control our costs and continue to demonstrate our ongoing commitment to environmental conservation.”
DAN CLARK, HEAD OF CENTRAL SERVICES AND ASSURANCE,
NATS, UK
Source energy
and fuel
Minimize price
and operational
risk
Reduce your
carbon
footprint
£90K SAVINGS
IN SUPPLY CONTRACT
Carried out an extensive procurement process analysing many suppliers to improve all aspects of the contract, in addition to the renewable electricity element. This included contract conditions that made trading terms more transparent, leading to a significant reduction in transaction costs.
