Biomass Exchange review – February 2020
The cheapest biomass at Baltpool exchange in February since 2014
In February, the price of woodchips at the Baltpool biomass exchange decreased by 7% compared to January and reached 115.97 EUR/TOE (9.97 EUR/MWh), which was the lowest price recorded in the month of February since 2014. Accordingly, the turnover of the Baltpool biomass exchange in February decreased by 22% – from EUR 2.51 million to EUR 1.95 million.
“One year has passed since the moment when biomass suppliers had felt the first signs of a crisis and the possible surplus on the biomass market. The increased activity on the Belarusian market, the favourable conditions to accumulate biomass in warehouses in summer, the autumn conditions favourable for the production of biomass and the warm winter were the main reasons that affected the lowest prices this season over the past ten years. The biomass price in summer this year is likely to be similar to the winter SPOT market price,” said Vaidotas Jonutis, Trade Manager at Baltpool energy exchange.
In February, heat producers purchased 16,058 TOE (186.75 GWh) of biomass, which is a 17% decrease compared to January (19,244 TOE or 223.81 GWh). Most of the biomass (72%) was purchased under SPOT contracts, and the remaining quantity (28%) was purchased under one-month transactions. The weighted price under the concluded woodchips transactions in February decreased by 7% from 124.77 EUR/TOE (10.73 EUR/MWh) to 115.97 EUR/TOE (9.97 EUR/MWh) and, compared to the price under woodchips transactions last year, decreased by 24% (from 153.30 EUR/TOE or 13.18 EUR/MWh).
In February, the demand for biomass under transactions concluded at the Baltpool exchange decreased by nearly 10.3% compared to January (48,245 TOE or 561.1 GWh). A total of 43,236 TOE (502.83 MWh) of biomass was delivered in February, which is 16% decrease compared to February 2019 (598.9 GWh or 51,493 TOE). In February 2020, the price of delivered biomass remained similar to the January price (141.78 EUR/TOE or 12.19 EUR/MWh), i.e. the decrease was only 0.5% (140.93 EUR/TOE or 12.12 EUR/MWh). In February 2019, biomass was delivered for a price that was 27% higher (194.29 EUR/TOE or 16.70 EUR/MWh) compared to February 2020. In February, similarly to January, the greatest share of biomass (approximately 40%) was delivered under half-year transactions.