On 6 February 2018, the Lithuanian biomass exchange BALTPOOL in cooperation with partners launched the biomass exchange BiomassPool ApS in the Kingdom of Denmark. It is the first biomass exchange in this country.
“One of BALTPOOL’s strategic objectives is to expand its operations in other countries while relying on our knowledge and expertise. The demand for biomass in Denmark is rapidly growing and a large share of biomass is acquired under international transactions, which means that this country offers us an excellent expansion opportunity. The new biomass exchange will ensure a simpler and more convenient purchase of biomass for energy producers and help biomass suppliers to find buyers,” said Nemunas Biknius, chairman of the board of BALTPOOL.
Discussions on the possibilities to launch a biomass exchange in Denmark with Kenneth Lykkedal, an experienced Danish entrepreneur in the field of energy who became a partner of BALTPOOL, began in the spring of 2017.
“The biomass market in Denmark is rapidly growing and many power plants undertake upgrades to be able to use biomass instead of hydrocarbon fuels, and we therefore felt the need to structure trade in biomass. We analysed the situation and concluded that the optimal method is to avail of the experience of the BALTPOOL biomass exchange, which has been successfully operating for five years now,” said Kenneth Lykkedal, head of BiomassPool.
Currently, approximately 4 million tonnes of woodchips (twice as much as in Lithuania) and 1.5 million tonnes of straw are consumed in Denmark annually. It is estimated that the Danish biomass market will grow by a further 50% in the near future. The Baltic States are among the key biomass suppliers in the Danish market, and Lithuanian companies are therefore expected to become active participants of the Danish biomass exchange.
According to Mr. Smaliukas, director general of BALTPOOL , BiomassPool was developed based on the BALTPOOL system and know-how, and Danish partners are responsible for the documentation of the new exchange, adaptation of products for the market and provision of services to participants.
“It is the first but probably not the last export of the BALTPOOL system to foreign countries. As biomass strengthens its position in the energy sector, other countries may also want to implement our system,” said Mr. Smaliukas.
At present, BALTPOOL is actively operating in Lithuania and Latvia. Lithuanian and Latvian companies are engaged in trade in the Lithuanian biomass exchange, while participants from Estonia and Belarus cooperate with Lithuanian partners.