MARKETS AND FINANCE PELLETS &63.8It%FDFNCFS/PWFNCFS EUR ! %! % $! $ #! # Pix Pellet Nordic CIF The industrial pellet market in Europe is still affected by the Drax unit 2 downtime and by exchange rate pressures, as reported by Hawkins Wright’s Forest Energy Monitor. US pellet producers have been reluctant to lower their prices, regardless of the weakened EUR exchange rate against the US dollar, giving European producers an advantage in pricing. Spot trade for both imported and intra-EU pellets has been sluggish, impacted also by the fall of stocks of industrial ARA pellets by 6.7% in September. An oversupply in industrial pellets continues, and the awaited seasonal upturn in pellet trade has not yet been seen. The latest statistics show that there has been some growth in wood pellet imports in January-August 2015 to the EU area compared to same period last year, the three largest exporters being USA (almost 60%), Canada (over 20%) and Russia (over 10% of the total imports). According to the AEBIOM Statistical Report 2015, the use of industrial wood pellets has decreased 1.6% from previous year in the EU area in 2014. The drop derives mainly from a reduced Belgian and Dutch pellet usage, while the pellet use in Denmark and the UK has increased. This shows the industrial pellet sector’s significant leaning on national support policies. In 2014, the share of the UK in the European industrial pellet consumption was about 60%, while Denmark covered about 20%. The heating season has started in the Nordics, and temperatures were quite near the long-term average in October, while at least some areas had much more sunshine than on average. Changes in price quotes reported to us for the PIX Pellet Nordic Index were again mixed with a small upward majority. The EUR value fell against the SEKS in October by 0.5%, compared to the September 2015 average. This meant some upward pressure to the EUR-value and the opposite to the SEK-value. After removing the highest and lowest 10% of the price quotes, the PIX Pellet Nordic index value increased in EUR-terms by 28 cents, or by 0.98%, ending at 28.79 EUR/ MWh. The value increased also in SEK, by SEK 1.37, or by 0.51%, and closed at 269.14 SEK/MWh. Note: PIX Pellet Nordic CIF focuses on industrial pellets use in the Nordic and Baltic Sea region. The index is based on the previous month’s data and published the 3rd Tuesday of every month at 12 noon GMT+2. For price conversion between price per ton and price per MWh, a coefficient of 4.8 is used, if not otherwise informed by the price provider. The PIX indexes are trade mark registered, worldwide, by FOEX Indexes Ltd. Using the PIX indexes commercially is subject to approval by FOEX Indexes Ltd, the owner of the PIX index trademark. 3344 BBiiooeenneerrggyy IInntteerrnnaattiioonnaall NNoo 8833,, 77--22001155 BI83/5124/DN Biomass Thermal Energy Council Update National Bioenergy Day As part of National Bioenergy Day, BTEC along with its colleagues in the biomass industry helped plan a panel discussion in Washington, D.C. that served as the kickoff event of the newly re-chartered House Biomass Caucus of the US Congress. The event drew an audience of over 50 policy and industry representatives, and the turnout reflected the increasing support and interest in biomass as an important national source of sustainable energy. The groups represented on the panel were the US Forest Service, the Environmental and Energy Study Institute, Wilson Engineering Services speaking for thermal and CHP technologies, the Biomass Power Association, and Enviva Biomass. The panelists shared their updates on biomass projects that they are engaged in, as well as the overall benefits of biomass energy to national, regional, and local economic and environmental markets. With over 60 organizations participating in the 3rd annual National Bioenergy Day this year, BTEC is encouraged by the success of this national event and is confident that the efforts of non-profits, industry, and government organizations will continue to increase support of this sustainable energy source. Biomass Thermal DC On November 18, BTEC was proud to host the Biomass Thermal DC Summit 2015 on Capitol Hill. This event served as a f ly-in and brought together members of the biomass industry including university professors, pellet and boiler manufactures, federal employees, and other biomass related non-profit groups. Summit attendees had the opportunity to meet with more than 40 Congressional members, staffers, and federal agencies to discuss the enactment of policies and programs that will promote the widespread use of sustainable biomass feedstocks. The main topics discussed were the 2015 Biomass Thermal Utilization Act, tax incentives for biomass, and how biomass is defined in legislation and regulatory language as a renewable and clean thermal energy source. Attendees experienced first-hand the importance of personally reaching out to their Representatives and Senators, and many stated that they were encouraged by the successful conversations they had to continue communications and attend fly-ins in the future. Statewide Wood Energy Teams (SWETs) With environmental issues such as climate change, invasive species, and intense wildfires threating forests of the Western US, these states have collaborated to form their own SWETs and gathered in The Dalles, OR in October at the 2nd annual Wood to Energy meeting. This event catalyzed broad support for a regional vision to protect and utilize future woody biomass in the Western US, and allowed each state’s SWET to learn from each other and outside experts on issues that they face such as economic and political support and how to sustainably grow the biomass economy. The conference highlighted the power that lies within biomass stakeholders themselves when working together on a state and regional level to identify, strategize, and achieve common goals. States in the Northeast and Midwest have been developing SWETs over the last few years and have already begun to collaborate on efforts to promote the biomass heating industry. As different regions of the US face very dissimilar levels of biomass utilization and differing feedstocks and levels of state support, the development of regional support networks such as this is key for the identification of the common elements needed by the US biomass thermal market to turn a diverse industry into a major market. Meghan Martin, BTEC, Clean Eenergy Fellow BI83/5119/AS "!
Bioenergy International no 7 December 2015
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