Baltpool to operate under own brand in Denmark
Baltpool – an international digital biomass trading platform, is poised to double up on its commitment to the Danish solid biomass market by launching operations under its own BALTPOOL brand name starting January 1, 2021. A direct presence will, the company says, will provide Danish customers a “one-click option” to trade woodchips and pellets from home with convenient online access to the markets of neighbouring countries.
Since the launch of operations in 2013, the Lithuanian-state-owned digital trading platform counts 136 buyers and more than 300 sellers from diﬀerent countries as members. Over 5 TWh of biomass is traded via the platform annually with a total transactional value of over EUR 62 million (in 2019).
Baltpool’s online trading system is often ranked among the best-organized models for biomass trade in Europe. It has already turned into a key instrument for liquid and competitive biomass market transactions in Lithuania, Latvia, Estonia, Poland, Sweden, and Finland.
Expand platform offering
In Denmark, the company has been oﬀering the service since 2018 under a licensing agreement with the Danish trading system operator BiomassPool. Eﬀective January 1, 2021, Baltpool will operate in Denmark under its own BALTPOOL brand name thus providing Danish clients with online access to Nordic and Baltic biomass markets on the platform.
Biomass is increasingly seen as an important element for the switch away from fossil fuels across the region. Therefore, we are committed to providing Danish buyers and sellers of biomass standard trade and delivery options, proper risk management tools, and comparative information on price levels at home and abroad in our pursuit to become a natural foundation for a sound business that serves the beneﬁt of all parties involved, said Andrius Smaliukas, CEO of Baltpool.
Based on the auction principle, both long- and short-term contracts and contracts for delivery by vessels according to CIF, FOB, FAS conditions will be oﬀered to Danish market participants. Both the exchange supply and payments will be secured and guaranteed via a collateral system and supplier categorization.
According to Baltpool, the intent is to start waste wood trading and launch an automatic measurement of carbon dioxide (CO2) footprint for biomass as well as recognition of compliance with RED II requirements in 2021. The company will also provide professional support with an international team of experts in trade and development, data analysis, IT, and law.
According to Kenneth Lykkedal, Founder and Director of BiomassPool that was launched in 2018, BiomassPool will change service providers and continue to oﬀer trading of biomass products in Denmark on its own trading platform.
In addition, it too plans to extend the product oﬀering on its new platform and oﬀer trading of woodchips, wood pellets, and straw which must comply with the legislation for the trading of certiﬁed sustainable biomass.