The Latvian company “BioEx” has created a biomass trading platform for the sectors of heat supply, cogeneration and production, the representatives of “BioEx” informed.
The content will continue after the announcement
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As company representatives explain, the biomass trading platform will serve as an online tool for everyone who uses biomass in Latvia, from producers and traders to heat supply and cogeneration companies. The goal of “BioEx” is to bring together on the new platform all important Latvian energy and forestry companies that use biomass in their operations.
The registration of market participants on the platform starts today, but the first trading session is scheduled for February 6, 2023.
The “BioEx” platform will work similar to the global online commodity exchanges: market participants will be able to buy and sell biomass products in open, regular and transparent trading sessions, where the current best price and delivery terms for biomass, such as wood chips, will be determined. Secure payments will be ensured for the platform and the transaction execution agent function will be provided by strategic platform partner AS”Industry Bank“.
Gunārs Greiža, a member of the company’s board of directors, explains that all biomass market participants, from municipal boilers to pellet producers, currently conduct transactions and make purchases in a fragmented and non-transparent market, where there is no transparent information on supply and demand. “This is a market where there is significant potential to increase efficiency,” says Greiža.
There are several hundred biomass market participants in Latvia, e.g. 62 regulated heat supply companies producing heat from biomass and at least the same number of producers which are smaller and do not meet the requirements of the regulated market, but actively participate in the market. Also, there are about 50 manufacturers of pellet production, biomass export and other wood industry industries in Latvia where the basic raw material is biomass. In addition, several hundred biomass producers, transporters and holders, who are in fact all forest and agricultural land owners, make up the market.
“BioEx” was registered in April this year and its registered capital is 100,000 euros, according to information from “Firmas.lv”. The largest owner of “BioEx” is SIA “EcoHeat Holdings”, which owns 75% of the shares, while 25% of the shares belong to “Forty Seven Limited”, registered in Great Britain.
