The world's first biomass exchange will open in Rotterdam on 3 November.
APX-ENDEX (Amsterdam Power Exchange-European Energy Derivatives Exchange) announced in July 2010 its intention to open the biomass exchange in the Netherlands, and carried out a joint market consultation study among market participants and other stakeholders revealed the growth potential of the industrial wood pellets market and the need for exchange traded biomass products.

APX-ENDEX, which is working with the Port of Rotterdam, has confirmed that the exchange will be developed in two phases. Phase one starts with non-cleared products where the physical settlement is arranged bilaterally by the counter-parties, allowing market participants to trade standard contracts in a transparent environment. During phase two, clearing services for biomass contracts will be developed and implemented, providing further financial security to market participants. This is scheduled to take place during the course of 2012.

For more information on the forthcoming Biomass Exchange click here.