Lithuania’s success would be impossible without Baltpool. This market instrument has significantly contributed to the development of the use of biomass in heat production. We think that our material on the expediency of the transition from gas to biomass has convinced you that for Ukraine the creation of a biofuel market is an urgent issue.

Proportion of different fuel types used in the district heating sector in Lithuania, 1997–2017, with a forecast for 2020. Data source: Lithuania District Heating Association

Important indicators

During the 2017-2018 heating season, biomass was supplied through BALTPOOL under 4,067 contracts. The total amount of sold biomass during the heating season was 12.41 PJ, of which 96.5% was purchased by 102 buyers from Lithuania and Latvia. More than 90% of all suppliers on the biomass exchange are Lithuanian companies.

Facts about the biofuel exchange

In 2012, the National Commission for Energy Control and Prices (NCC) issued an operating license to BALTPOOL, the Baltic Sea Energy Exchange, which gave it the right to organize trade in solid biofuels.

Since 2016, all biomass for energy production has been purchased on the biofuel exchange, which is regulated by law, but with permission to buy biomass outside it, if the price of fuel is lower than on the exchange.

Comparison of prices (in € GJ−1) of the two raw materials—forest biomass and natural gas—used in heat production. Data source: Strategy of State Forest Enterprise Activity 2019-2023

BALTPOOL currently has 251 companies producing and supplying biofuels and more than 100 buyers of biofuels. One of the most popular types of biomass sold on the exchange is wood chips. Competition between heat producers is organized through monthly auctions for the sale of heat, also organized at BALTPOOL. The exchange also operates in other countries.

We remind you that the Bioenergy Association of Ukraine is a partner of BALTPOOL in the project aimed to digitize the Ukrainian bioenergy market.

Source: Lithuania 2021, Energy Policy Review, INTERNATIONAL ENERGY AGENCY