EU source: EU selects PwC for mineral, energy platform
The EU has chosen PriceWaterhouseCoopers and a Slovak software company to develop a 9 million euro ($9.4 million) joint purchasing platform for critical minerals and energy, according to a European Commission source and a document seen by .
Source who refused to give their name said that the platform would have three separate mechanisms: one for raw materials such as hydrogen and another for energy products like natural gas and biomethane.
Other EU sources stated that the final details of this platform is still being worked out.
The industry was concerned about the difficulties of combining trading for 17 essential minerals, natural gases and hydrogen because of the differences in the market structure of each commodity.
The bloc wants to pool purchasing orders so that participants can get better deals and prices on critical minerals, essential to the green transition. These are traded in thin, opaque markets dominated often by China.
The latest development comes after U.S. president Donald Trump said that the European Union must increase its oil and gas imports from the United States or else face tariffs.
The European Commission's Ursula von der Leyen stated on Tuesday that the EU is willing to engage in negotiations with Trump.
PLATFORM TO LAUNCH IN 2025
A document from the EU revealed that PwC EU Services, a Belgian software company, and Sfera, a Slovak firm of software developers in Slovakia were selected by the Commission to develop this platform.
PwC and Sfera didn't immediately respond to comments.
In October, the EU announced that it hoped to sign a contract before the end of 2024. Eight bidders had submitted proposals.
Source: The Commission will continue to plan the launch of the first elements in the platform for later this year.
The eight bidders include consulting group Deloitte, and a proposal by Germany's Metalshub & Enmacc for using their existing trading platforms in metals & energy for the EU Project.
Sources said that EU officials were rushing to develop this initiative, which is a crucial element of the EU's Critical Raw Materials Act. Ursula von der Leyen had given the directive.
The CRMA came into effect in May and aims to increase domestic production and processing for critical minerals like lithium and rare Earths which are required for electric vehicles and turbines.
GAS SUCCESSFUL?
The new central purchasing system was shaped by the existing platform for gas joint-buying, AggregateEU. This platform was launched in 2022 during the energy crises.
The EU claims that the platform has been a great success. However, a report from the European Court of Auditors questions the effectiveness of this platform which brought buyers and sellers together, but left final contracts to the individual participants.
The Auditors' report stated that "We were unable to determine its added-value in relation with gas trading platforms nor could we identify a problem on the market that AggregateEU fixes."
Industry sources claim that the EU has not released any figures on the volume of gas contracted via the platform. The EU also hasn't provided any information about the number of contracts made.
Eurogas, the industry association, said that there is little evidence to suggest that the platform has helped to lower gas prices.
"The existence AggregateEU doesn't change the fact that EU gas companies compete in a tight market globally."
(source: Reuters)
