Europe set to launch its first biomass exchange
Europe’s first ever biomass exchange, through the trade of wooden pellets, is set to be launched at the Port of Rotterdam by Anglo-Dutch exchange and APX Endex.
Europe’s first ever biomass exchange, through the trade of wooden pellets, is set to be launched at the Port of Rotterdam by Anglo-Dutch exchange and APX Endex.
Global demand for wooden pellets, used to replace coal in the generation of electricity, has risen considerably in recent years as governments seek ways in which to cut carbon emissions and reduce fossil fuel reliance.
“This market will underline the importance of the mobilising all possible sources for achieving the renewables targets, in a competitive and therefore most cost-effective way - thus paving the way to a renewable energy supply at the best ratio between cost and benefits, both for the energy supply and the environment,” commented APX-Endex CEO, Bert den Ouden.
The initiative is set to commence on November 3rd as part of an agreement by Anglo-Dutch power and gas exchange APX-Endex with the Port of Rotterdam Port first discussed back in 2010. “Contracts offered for trading include three months contracts, three quarters and three calendars,” APX Endex said in a statement.
It is estimated that by the year 2020, the worldwide wooden pellet market could reach as much as 60 million tonnes. “In the port area itself, we foresee a market of two to three million tonnes in 2025. Outside Rotterdam, demand will be many times larger,” said Rotterdam Port Chief Executive, Hans Smits.
