NeoCem – Energy Contract
Context & Challenges
Neocem, an industrial player in the cement sector, is highly exposed to energy price volatility. In a context marked by rising and unstable gas markets, the company needed to secure its supply while optimizing costs. Energy is a strategic item in its business model, both for competitiveness and for sustainability. Neocem also sought to explore new forms of contractualization, in order to diversify its supply sources and limit financial risks linked to price fluctuations.
-
Sector: Building materials
-
Activity: Cement manufacturer
-
Number of employees: 40
Approach & Methodology
The three-month mission, entrusted to Needl, followed a four-step structured methodology:
Step 1
Analysis of annual consumption, identification of consumption profiles and critical volumes to secure
Step 2
Assessment of pricing clauses, delivery terms, and market risks.
Step 3
Design of a contractual mix combining alternative sourcing, indexed contracts, and spot purchases to diversify risks
Step 4
Support in discussions with SaveEnergies to optimize medium-term cost reduction opportunities
Key Success Factors
The mission’s success stemmed from mobilizing experts specialized in energy contracting, transforming complex analyses into actionable recommendations, and adopting a collaborative approach involving both Neocem’s internal teams and external partners.
Results & Impacts
- Secured 30 GWh of supply, including 23.6 GWh firm contracts, covering around 80% of annual needs
- Achieved price negotiations resulting in 1.52–1.60 €/MWh reductions, representing about 3% direct savings
- Reduced exposure to risk through a balanced portfolio: 30% alternative supply, 40% indexed contracts, 30% spot
- Established a partnership with SaveEnergies opening potential 20–25% additional cost savings in the medium term
- Clarified and secured contractual commitments, reducing legal risks and increasing visibility for internal teams