First reserve product transactions concluded at BALTPOOL biomass Exchange
The first biomass reserve product transactions were concluded at the biomass Exchange on 31 October: buyers purchased 390 toe of biomass reserve product in Žemaitija for the weighted price of 213.38 EUR/toe.
Biomass reserve products constitute a method for biomass buyers to secure the availability of biomass in case deliveries are interrupted during the cold season of the year. A buyer that purchases a biomass reserve may demand at any time that the reserve provider deliver biomass within 24 hours. The Ministry of Energy has instructed that companies that use biomass must have a reserve sufficient for 10 days.
Due to the undefined delivery date, frozen provider’s funds and the requirement to ensure the quality of biomass products it is likely that the price of reserve products will be higher than the regular biomass price.
In October, a total of 44,390 toe of biomass for EUR 7.85 million was purchased via BALTPOOL Energy Exchange; this was a 7% decrease compared to September when the turnover totalled EUR 8.45 million.