Engelhart

AI excels at energy demand forecasting, which is critical to creating more efficient power markets. Its ability to analyse vast amounts of data, including weather patterns, consumption trends, and economic indicators, allows it to make effective predictions about energy usage. This: • Improves energy efficiency • Drives cost savings • Makes renewable energy more valuable Since 2019, Google’s AI research subsidiary, DeepMind, has used its technology to maximise the value of Google’s wind farms. By training a neural network with publicly available weather forecasts and historical turbine data, the DeepMind system has shown it can accurately forecast wind power output 36 hours before actual generation. These forecasts enable the model to recommend optimal hourly delivery commitments to the power grid a full day in advance. DeepMind estimated in 2019 that their machine learning boosted the value of Google’s wind energy by roughly 20%. We take a deeper look at some of the use cases for AI in power markets in the latest edition of ‘The Commodity Perspective’. Please find a link in the comments and let us know your thoughts below. #commodities #AI #commoditytrading #power #gas

The energy demand required for AI is already accelerating rapidly. As AI models become more complex and their applications more widespread, the energy required to support these systems will grow exponentially. There needs to be a transparent conversation about how we power that growth.   AI will help create a more efficient, resilient, and sustainable energy landscape of the future, but renewables alone won’t be enough to power it. Natural gas and nuclear must play a key role in bridging the gap. They can support the expansion of AI and data centres while renewable technologies continue to develop and scale. The synergy between AI and energy will be a cornerstone of the clean energy transition. By addressing the challenges of increased energy demand and integrating a mix of energy sources, the industry can support AI as it plays a leading role in helping drive the transformation towards a more efficient and sustainable energy future. But it won’t be easy. The latest edition of The Commodity Perspective examines some of the issues in more detail. Please find a link below and share it with your networks. And let us know your thoughts below. #AI #naturalgas #commodities #commoditytrading

The potential for AI to revolutionise power markets is extraordinary. AI is set to be a huge driver of energy demand for years to come. It will create significant grid efficiencies, enable low-carbon technologies, and support the integration of renewables. And it’s not just a future prospect; National energy companies are already harnessing it for predictive grid maintenance and grid management. AI is also starting to support better power trading decisions, weather forecasting and news analysis, and we are just scratching the surface. However, powering this AI revolution presents significant challenges. Renewables alone won’t be able to meet the demand from AI data centres. Ageing electricity grids need to be updated, and increased energy consumption could strain existing infrastructure to the breaking point. To address these issues, a balanced energy mix that includes natural gas and nuclear power is essential to provide reliable baseload power. Additionally, significant investments in grid modernisation, more efficient AI algorithms, and sustainable data centre practices are crucial. Only through a coordinated effort can we ensure that a resilient and sustainable energy infrastructure supports AI’s growth. We explore the topic in more detail in ‘The Commodity Perspective’ that we’ll publish this week. However, it would be great to get your views, too. What impact will AI have on power and gas markets? #AI #power #gas #commodities #commoditytrading

The concentrated supply of coffee and cocoa makes both commodities highly sensitive to climate change. Vietnam and Brazil dominate coffee exports, while Ghana and Cote D’Ivoire lead in cocoa production. Any disruption in these supply chains has an outsized impact on global prices. And that’s what we’ve seen this year. In West Africa, the heart of global cocoa production, farmers have been dealing with El Nino, ageing trees, and pervasive crop diseases, all of which have significantly reduced yields. Similarly, major coffee-producing regions in Asia and South America have faced extreme weather events, including droughts and heatwaves in Vietnam and Indonesia and inconsistent rain in Brazil, which have disrupted harvests. The largest cocoa producer, Cote D’Ivoire, now expects next year’s harvest to recover. But the volatile price action we’ve seen this year is a glimpse of the future. These key food commodities will almost certainly become more expensive as the market adapts to structural supply changes driven largely by climate change. Given the current trajectory and supply outlook, higher prices for cocoa and coffee will likely persist in the medium term. What happens beyond that will depend on how these countries, producers and scientists respond with more sustainable farming practices and climate-resistant varieties. We explore this in more detail in the latest edition of ‘The Commodity Perspective’. Please find the link in the comments and let us know your thoughts below. #cocoa #coffee #commodities #commoditytrading #engelhart

At one point in April, cocoa was more expensive than copper per metric ton. It was an extraordinary moment and demonstrated just how volatile and unpredictable cocoa has become this year. Chronic supply shortages have met inelastic demand, with record speculation fueling the fire. But the unprecedented cocoa bull run has also served as a potential warning sign of the broader impact of climate change on food commodities. Cocoa and coffee are bellwethers for how more extreme weather events are reshaping global agriculture. Higher prices and market volatility may soon be the new normal. And the resilience of our food systems will depend on our ability to adapt to our changing climate. We’re exploring these challenges in more detail in this week's edition of ‘The Commodity Perspective’. Please find a link in the comments and let us know your thoughts below. Have you been trading cocoa this year? What’s your outlook for the medium-long term? #cocoa #commodities #commoditytrading #engelhart

Coffee and cocoa have been two of the biggest trades of the year.   All-time-high prices and record volatility have created challenging conditions for traders and producers alike. Market participants have been left wondering if the price action is down to short-term speculation or structural supply changes due to a changing climate. That’s a central question in this week’s edition of The Commodity Perspective. We also explore: • How extreme weather events are impacting major cocoa and coffee-producing regions • The concentrated geographical supply chains and their impact on global prices • The role of speculation, supply shortages, and persistent demand in driving up prices • The need for innovative farming practices and climate-resistant crop varieties to ensure the future of these essential commodities Please read the latest edition at the link and share it with your networks. And let us know your thoughts below. #cocoa #coffee #commodities #commoditytrading

Europe is leading the way for renewable power trading. Its highly interconnected grid has: • Enabled cross-border power trading • Improved the balancing of supply and demand across the continent • Allowed the EU to continue setting ambitious renewable energy targets We’ve already seen record monthly volumes this year for European power derivatives on the European Energy Exchange AG, Europe’s largest energy trading platform. This is partly driven by the demand for renewables. We've also seen more countries, such as Japan, follow Europe’s model for facilitating tradeable power markets. However, there's still enormous untapped potential globally. Once renewable providers have increased certainty from efficient price discovery and risk management solutions, they can unlock the financial investment needed to grow the industry. That’s why we see trading as a fundamental enabler of the clean energy transition and why we agreed to acquire Trailstone Group, a global leader in the renewables trading space. You can read more about how we can bridge the gap to tripling renewable energy output by 2030 in the latest edition of ‘The Commodity Perspective’. Please find a link in the comments and let us know your thoughts below. #renewables #cleanenergy #commodities #commoditytrading

Our ambition is to build the commodities merchant of the future with Trailstone Group. We are creating a leading platform that integrates our advanced data analytics, cutting-edge technology, and innovative weather modelling capabilities to set new standards for our industry. → Innovate with data • Harnessing the power of data and advanced analytics to drive smarter, more informed trading decisions. → Optimise with weather modelling • Using our world-class weather modelling and AI to support our traders to make better decisions. → Enhance technological capabilities • Developing a comprehensive digital model of global power markets to streamline operations and maximise efficiency. → Support clean energy • Leveraging technology to manage and optimise renewable energy assets, playing a critical role in the clean energy transition. → Grow our entrepreneurial culture • Creating a dynamic environment where top talent can thrive, innovate, and drive continuous technological advancement. As a commodities merchant of the future, we will look more like a technology company than a traditional commodities business. We will be active across a diverse range of markets but at the forefront of the energy transition, providing risk management and optimisation services supported by our advanced digital capabilities. We look forward to sharing more of our vision for our new organisation in the coming weeks as we work towards integrating our businesses.

Can the world triple its renewable energy capacity by 2030? That’s the target 130+ countries agreed to at COP28. And a question we explore in the latest edition of ‘The Commodity Perspective’. We also wanted to examine the critical role renewable energy markets and trading must play to enable the required scale of investment and adoption. The tripling target is undoubtedly hugely ambitious, but it is achievable if we can continue the accelerated growth since 2022. In this week’s edition, we take a closer look at: • The lessons that China and Europe can provide to the rest of the world’s renewable energy objectives • The challenges that wind energy is facing and the ‘tailwinds’ that are on the horizon • The support that’s needed for growing renewables in developing nations If you’re interested in reading more, then follow the link, sign up, and share with your networks. And let us know what you think in the comments. Can the world triple its renewable energy capacity by 2030? #renewables #netzero #commodities #commoditytrading

Our long-term strategy is to play a leading role in the clean energy transition, and that’s why we have agreed to acquire Trailstone Group. The acquisition is a pivotal step towards our shared vision of a sustainable energy future and the vital role that trading will play in getting us there. Integrating Trailstone's cutting-edge technology and expertise in renewables and power and gas trading with our established global platform means we will: ► Support the clean energy transition Create solutions for managing renewable energy's intermittency and provide risk management and asset optimisation services to even more renewable energy providers. ► Innovate and Advance Combine our strengths to develop advanced data analytics, weather modelling, and trading capabilities that set new industry standards. ► Foster Talent and Growth Provide opportunities for our teams to thrive, attract new talent, and drive a culture of innovation and excellence. ___ Our plan is to create a platform that will enhance our trading performance and significantly impact the global energy market. That’s why we’re already looking forward to the future with Trailstone Group. #renewablestrading #cleanenergytransition #netzero #commodities #commoditytrading