Baltpool opens for trading of biomass from Baltic Sea Region ports
Baltpool UAB – the Lithuanian state-owned international online biomass trading platform has announced that has expanded its activities further with the introduction of biomass trading in the ports of the Baltic- and Scandinavian countries as well as Poland.
According to a statement, this step by Baltpool will create even more opportunities for biomass producers to expand the geography and increase the trade volumes of their products internationally. Likewise, buyers from the Scandinavian countries will have more opportunities to purchase sustainable biomass from the Baltic Sea region.
The trade of biomass through ships is taking place as usual on Baltpool’s electronic trading platform, all according to standardized trading rules. However, participants can now register trading sites in ports and begin buying and selling biomass with ships. This is relevant for biomass producers in the Baltic States and Poland, as well as for Scandinavian buyers and heat producers who buy about 30–50 percent of biomass through ships in the Baltic States, said Andrius Smaliukas, General Manager of Baltpool.
Opens new channels
According to Smaliukas, the start of biomass trade in ports is a “great opportunity” for both biomass sellers and buyers to find new partners abroad by utilizing the new export channels and purchasing biomass that meets the sustainability requirements.
All biomass products can be traded with ships in ports as in regular biomass auctions. Trading is conducted in accordance with Incoterms 2020 – Free On Board (FOB), and Cost Insurance & Freight (CIF). It also allows buyers to register sales outlets in ports, where they can choose biomass products from different producers on Free Alongside Ship (FAS) conditions.
On the Baltpool biomass exchange platform woodchips, wood pellets, fuel peat, and lignin are traded with deliveries offered both locally and internationally. Recently, a new product was launched on the exchange – biomass from recycled wood.
The specifications of this new product are standardized and based on the requirements of different Baltic and Scandinavian countries that enable companies to trade used wood transparently.
In 2020 a total of 5 629 transactions amounting to 5.4 TWh of biomass fuels valued at EUR 54.9 million were concluded on the exchange platform.