The European Energy Exchange (EEX) registered the first trade on Industrial Wood Pellets Futures on its platform on Monday, 15 January 2018.
The trade for 10 lots in the Feb 18 delivery is equivalent to 1,000 tonnes and was brokered by Tradition on behalf of Vattenfall Energy Trading and Total Gas & Power Ltd.
The contracts complement EEX’s product portfolio of energy-related, globally traded commodities and allow market participants an effective price hedging tool with financially settled futures. Quoted in US dollars, the product offers access to a wide range of existing EEX market participants, from utilities and producers to traders.
“EEX launched this contract to give market participants an opportunity to manage their price risk and to deliver a clear and transparent price signal for this fast growing commodity. We welcome the support of brokers and their cooperation in establishing an exchange market for wood pellets,” adds Steffen Köhler (pictured), COO of EEX.
“Vattenfall is committed to reduce the use of fossil fuels and is a strong supporter of sustainable biomass use in both our own operations and our customers’ fuel portfolios” says Christian Joore, Lead Trader for Vattenfall Energy Trading. “Therefore we welcome the EEX Wood Pellets Futures initiative, since new financial instruments like these are valuable tools to effectively hedge biomass price and credit risk in this growing sustainable energy market segment.”
“Tradition is once again at the forefront of the development of these new and exciting environmental markets. We have a proud history of being ahead of the curve in environmental products and we’re committed to help build a robust and dynamic biomass market in the coming years,” says David Jenkins, Director of Biofuels at Tradition.
