Baltpool and Svebio partner in e-trading expansion
The Swedish Bioenergy Association (Svebio) and Baltpool UAB, the Lithuanian state-owned online biomass trading platform, have recently initiated a collaboration to introduce Baltpool’s digital trading platform for solid biomass fuels such as fuelwood, woodchips and wood pellets to Sweden.
Through the platform, it will be easier for market participants to meet and do business on standard terms. For the energy market, this means that trade in solid biomass fuels in the Baltic Sea Region and in Sweden can be further developed with more transparent pricing.
It is our hope that the collaboration with Baltpool will give Swedish buyers and sellers of biomass fuels better information on current price levels and that the stock exchange will grow and become a natural part for a sound business that benefits all parties, commented Gustav Melin, CEO of Svebio.
Biomass and biofuels are increasingly traded internationally and in recent years there have been some very large investments in new biomass-fired district heating and cogeneration plants in the Baltic Sea Region.
The increased use of biomass fuels is an important part of the switch from fossil fuels and increased trade is a prerequisite for efficient fuel supply, said Gustav Melin.
Lithuania a good example
In Lithuania, the district heating sector is successfully switching fuel – from imported fossil gas to domestic biomass fuels and waste. Baltpool, which started operations in 2013, is playing an important role in this transition and proving a popular choice amongst buyers, sellers, and traders of solid biomass fuels. Based on the auction principle, trading takes place on Tuesdays every week.
Both long- and short-term contracts can be offered, the exchange supply and payment are secured and guaranteed by a collateral system and supplier categorization.
I am impressed by the development. Lithuania has replaced fossil fuels with bioenergy and thus improved the trade balance, security of supply, and decreased fossil emissions – a fantastic example for other countries in Europe that could do the same. Baltpool has been an important tool to achieve this change, said Gustav Melin.
Baltpool has since expanded its operations to Latvia, Estonia, Denmark, Poland, and now Sweden. Over 5 TWh of biomass fuel was sold via the platform in 2019 with a total transactional value of just over EUR 62 million.
The agreement with Svebio is significant for Baltpool’s continued expansion. Sweden is arguably the world’s most well-established and developed bioenergy market. It is also large, around 150 TWh per annum compared to Lithuania’s 20 TWh and so cooperation with Svebio is a great opportunity for further successful international expansion, remarked Andrius Smaliukas, CEO of Baltpool.