Platts launches CIF NW Europe Industrial Wood Pellet assessment

London (Platts)–15Aug2014/628 am EDT/1028 GMT
Platts has launched a weekly spot market price assessment for industrial wood pellets delivered to northwest Europe with a net calorific value of 17 GJ/metric ton, effective Friday, August 15, 2014. The new assessment is published in Coal Trader International, European Power Daily and Power in Europe.
Platts intends to reflect the value of typical shipments of pellets discharging in northwest Europe each week. Prices are assessed on a market on close basis at 5 pm London every Friday or, in the event of a public holiday, the nearest preceding business day.
Industrial I2 wood pellets with the following specifications are included in the assessment process:
-a standard calorific value of 17 GJ/mt on a net-as-received basis with typical sulfur content of 0.1% as received and typical ash of 1% as received from any origin.
The assessment reflects the price in $/metric ton of wood pellets for delivery 7-45 days forward from the date of publication and rolls forward each week.
The new symbol is:
IWPNW00 – Industrial wood pellets CIF NW Europe 17 GJ/metric ton
Platts also publishes weekly UK wood pellet spreads, which are indicative prices giving the average difference between the cost of wood pellets and the equivalent price of UK electricity on any given day at fuel efficiencies of
30%, 35% and 40%.
The pellet spreads are based on CIF Northwest Europe 45-day wood pellet assessments, the equivalent prompt UK power assessment, and the UK Levy Exemption Certificate (LEC) and Renewable Obligation Certificate (ROC) subsidy
bandings for biomass power generation.