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FOEX Indexes Ltd is an independent company providing audited, trade-mark registered pulp, paper, recovered paper and wood based biomass price indices.

Dec 12, 2017

Market Comments

PIX Bioenergy - Forest Biomass Finland

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The PIX Forest Biomass Finland index value is based on trading prices of October 2017 of forest residues and wood based industry by-product bioenergy components in Finland, excluding pellets and liquid bio-fuels.

Turun Seudun Energiantuotanto Oy (TSE) have inaugurated their new Naantali multifuel power plant. In the beginning, biomass will account for 45% of the fuels but next year the share will be increased to 60-70%. Biomass will be procured both from the surrounding area and later also from overseas, mainly the Baltics. With the new powerplant, TSE’s carbon dioxide emissions will decrease significantly.

According to Statistics Finland, many of the fuel prices increased in Q3/2017 compared to the previous year. The reason for the rise is said to be the higher prices of imported fuels and increased taxes. Only peat and forest chip prices decreased. Coal prices increased significantly at the end of 2016, but after that the prices have come down a bit. However, from September 2016 to September 2017 coal price in electricity production has increased by 34%. During the same time, the natural gas price has increased by about 14%, while those prices have, however, declined a bit during Q3/2017. As per the Luke statistics, the wood trade from privately owned forests amounted to 3.68 Mm³ in October 2017. The volume was over 10% below the September 2017 volume, and about 10% down y-o-y.

October temperatures in Finland were above average in the beginning of the month, but fell below average towards the end of the month. After removing 10% of the extreme values, and boosted again by the clearly risen share of woodchips, the PIX Forest Biomass Finland Index showed an increase of exactly 1.00 euro, or of 5.66%, and settled at 18.62 EUR/MWh.