BALTPOOL – an international online biomass exchange set to offer more options to the Danish energy market
BALTPOOL – аn international digital biomass exchange, is ready to up its commitment to the Danish solid biomass market by launching its operation under its own brand name (https://www.baltpool.eu) starting January 1, 2021.
BALTPOOL‘s direct presence will provide Danish customers a one-click option to trade woodchips and pellets from home with convenient online access to the markets of neighboring countries.
With 136 buyers and more than 300 sellers from different countries on board, BALTPOOL’s online trading system is often ranked among the best-organized models for biomass trade in Europe. It has already turned into a key instrument for liquid and competitive biomass market transactions in Lithuania, Latvia, Estonia, Poland, Sweden and Finland. In Denmark it has been offering the service under a licensing agreement with Danish trading system operator Biomasspool.
“Biomass is increasingly seen as an important element for the switch away from fossil fuels across the region. Therefore, we are committed to providing Danish buyers and sellers of biomass standard trade and delivery options, proper risk management tools and comparative information on price levels at home and abroad in our pursuit to become a natural foundation for a sound business that serves to the benefit of all parties involved,” Andrius Smaliukas, chief executive officer of BALTPOOL, said.
Based on the auction principle, both long- and short-term contracts and contracts for delivery by ships according CIF, FOB, FAS conditions will be offered to the participants of the Danish market.
Both the exchange supply and payments will be secured and guaranteed through a collateral system and supplier categorization.
The intent is to start waste wood trading and launch automatic measurement of CO2 levels for biomass as well as recognition of compliance with RED II requirements in 2021.
BALTPOOL will also provide professional support with an international team of experts in trade and development, data analysis, IT and law.
More, than 400 members are registered to trade on the BALTPOOL biomass trading platform at the end of November. Over 5 TWh of biomass are sold via the platform every year with a total transactional value of over EUR 62 million (in 2019).
Since the start of BALTPOOL operations in 2013, Lithuania (the home market of Baltpool), has replaced a significant amount of fossil fuels with bioenergy, thus improving the trade balance and security of supply with more than 90 percent of biomass trade for centralized heating carried out on the open market and pricing often below bilateral contract level.