The fuel team at EFO consists of an experienced group of people that spend most of their time evaluating possible fuels to source. The strategy is both fairly simple and at the same time quite complex. Simple in the sense that our goal is to secure the right amount of good quality fuel and complex in the sense that a possible fuel has to have a green light in a lot of different meanings to fit our standards.
The process of turning waste into fuel looks like this:
We constantly look for possible waste to bring to Sweden and turn into fuel to create energy. However – to meet our high standards, many criteria have to be filled. We are on a daily basis contacted by companies all around Europe with offerings and we also spend a lot of time looking for opportunities. We have built up a wide network of partners and also attend conferences and fairs on a regular basis.
First up, whenever a possible opportunity arises, we do a quick ranking regarding the type of fuel, the quality of the fuel, possible means of transportation and other overall factors.
When a possible fuel passed the ranking process, a desktop evaluation is being made by one of our members of the fuels team. We look thoroughly into every detail regarding the opportunity and if all boxes check green – we move on to the next step.
How the site itself looks, local regulations, that valid permits are in place and various logistic details are evaluated and examined. Full control is crucial for us both regarding the fuel itself and the site's preconditions. If our evaluation index is below 60, we proceed to a legal due diligence with local representatives.
We then begin to negotiate the price that has to cover the logistic costs as well as our handling costs. Other important factors that are being negotiated are of course the amount of fuel that we can expect, the time frame of which we can expect a continuous delivery, and certain time frames are being checked to see if we can meet the current local logistic situation.
We then check our current stock of fuels and project the current and upcoming need for fuel at our partners. As we also have a large storage capacity on-site at our partner's locations, we are being able to balance the deliveries against the current need for fuel.
Final negotiation takes into account all the above steps and when all is clear, we prepare for all necessary permissions from customs, the so-called TFS’s and for signing of all documents.
Upon test delivery, we closely examine the fuel from every aspect being negotiated. The amount of moisture/water the fuel contains is monitored and if everything is too satisfactory, we can begin to take on the fuel. If the delivery in any way doesn’t fit what we agreed, we have the right to end the agreement.
One might think of delivery as the end of a long negotiation and evaluations process, but we like to think of it as the contrary; this is where it all begins and now follow-ups are being carried out on a day-to-day basis to make sure the fuel sourced stand our high expectations and what we agreed. After this step, hand-off is being made to the logistic team and operations begin.