In February Baltpool launches biomass trading by ships at the Denmark-based exchange managed in cooperation with partners

Baltpool energy exchange aims to create a European biomass trading platform and, as part of this project, has presented an opportunity to trade in biomass by ships between the Baltic countries and Denmark in the Denmark’s system BiomassPool in February this year. This opportunity is of particular importance to Lithuanian, Latvian and Estonian sellers of biomass that wish to export biomass to Scandinavia.

“The development of export opportunities at the exchange provides our clients with a chance to earn additional revenue at prices higher than local market prices. This biomass trading channel also creates an added value to our clients as it expands their trading geography and foreign partner network. Furthermore, the main share of payment for biomass loaded onto a ship is made immediately after the loading. Sellers can place offers for one-month and three-month contracts for the forthcoming heating season now, and in this manner demonstrate their capacities to potential Danish buyers. The need to export biomass has been felt on the market for several years now, and we are therefore delighted to be able to meet market needs and are expecting an active start of trading,” said Svetlana Kavina, Head of Business Development at Baltpool energy exchange.

A stable demand for sustainable, certified woodchips (FSC and SBP) is observed on the Danish market. Today, large heat production companies have woodchip purchase divisions that are responsible for purchasing high-quality woodchips in the Baltic countries and other regions.

Also, to improve the sustainability in Danish cities, Amagerværket, one of the country’s largest power plants being built by the major heat supplier Hofor, will be soon launched in the vicinity of Copenhagen. The powerful biomass boiler provided at the facilities will require approximately 240 trucks of biomass per day, i.e. nearly twice as much as the cogeneration power plant to be opened in Vilnius and considered one of the largest in the Baltic countries.

Trading at the exchange currently takes place under two INCOTERMS international commerce terms, FOB and CIF.

To date, 385 participants have registered with the Baltpool biomass exchange; there are 57 participants in Denmark – of these, 9 are participants from the Baltic countries. The greatest share of foreign participants of the Baltic trading platform accounts for Latvian participants (64). Woodchips are traded via the exchange in Lithuania, Latvia, Estonia and Poland; partner-assisted trading also takes place in Denmark. Trading will soon be launched in Finland.