Alkane's Coal Mine Methane assets predominantly run baseload whilst the Natural Gas assets run largely through the peak demand period 4-7pm, when the power distribution network in the UK is typically under the most pressure.
The energy markets offer a number of opportunities to buy and sell a variety of tradable products over many timeframes. To ensure Alkane fully optimise the value of both our Coal Mine Methane and Natural Gas assets we will transact in all available markets.
The forward market allows us to sell ahead seasonally, quarterly, monthly or weekly at prices that lock in positive value. For Natural Gas assets we make corresponding gas trades to ensure our margins are protected. As we enter the Day Ahead and Intra Day markets we have further opportunities to either sell unhedged volume or buy back volume we forward sold that can now be bought below the marginal costs of production, always ensuring we sell back the corresponding gas position.
Finally, if we can see that the real time market is short and the Balancing Mechanism is offering prices above our marginal cost then any unsold power can be despatched to assist National Grid and receive the Balancing Price.
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One of the UK's fastest growing independent power generators with a total of 160MW of installed generating capacity.