Easy and effective competition
BiomassPool is Denmark's energy exchange for biomass trading, enabling market participants to buy and sell wood chips and ultimately conclude contracts for delivery of wood chips under specified terms and contract periods. At BiomassPool all trading is done anonymously and the energy exchange's electronic trading system ensures that buyers and sellers can easily and efficiently buy or sell the required amount of wood chips defined on the basis of specific quality and product requirements. At the energy exchange, both the product's wood chips and the cost of transport are priced meaning that the price that the buyer and seller end up in a contract is one aggregate price for wood chips delivered to the individual plant. At the energy exchange it is possible to trade different product grades of wood chips, as the contracts varies from week, month, quarterly and up to year contracts. The energy exchange has one weekly trading day, where all contract types are traded.
The energy exchange ensures that trading takes place on equal and transparent terms for all market players, thus creating a competitive exposed market, which ultimately provides competitive prices on wood chips.
Requirements for ensuring sustainable biomass
The industry agreement concluded between Danish Energy and Danish District Heating Ass. from June 2016 impose increasing demands on the Danish plants on securing the procurement of sustainable biomass. Thus, all plants are required to buy sustainable biomass with increasing demands year-by-year. In addition, the medium and large plants are required to document that they actually buy sustainable biomass. In cooperation with NEPCon, the requirements and standards of the Danish industry agreement have been implemented at the energy exchange. Thus, it becomes easier and more secure for market players to make sure they are trading sustainable biomass.
BiomassPool has entered into a license agreement with the Baltic Biomass Exchange - BaltPool - which means that BaltPool operates and makes its trading system (ETS) available to the BiomassPol. Baltpool is among others owned by the Lithuanian system operator (TSO) and has operated energy exchange for trading wood chips and wood pellets in Lithuania since 2012.
Advantages of trading biomass at BiomassPool:
Effective competition ensures the right market price:
Equal terms and conditions for all market players
Trade is conducted as an open negotiation at the electronic trading platform
The market participants are acting anonymously
Contract prices are transparent
BiomassPool offers one single marketplace where market participants' supply and demand can be matched once a week
Suppliers can submit bid(s) for several plants at the same time as the trading system at the BiomassPool takes into account the transport distance to the individual plant
Simple and secure system:
Easy and user friendly trading system for submitting order(s) and conclusion of contracts
Trade with standardized products
Compliance with the industry agreement requirements for procurement of sustainable biomass
BiomassPool prices both wood chips and the cost of transport, ensuring that the final contract price includes delivery to the individual plant