SUBSCRIBER NOTE: Changes to wood pellet spread formulas

Platts would like to inform subscribers that due to the UK government changing certain Renewable Obligation Certificate banding levels for types of biomass power generation, it has changed the formulas in some of its weekly pellet spread calculations published in Coal Trader International, Coal Trader and European Power Daily to reflect these changes.

As of April 6, 100% dedicated biomass projects were afforded a subsidy banding of ROC x 1.4 and those co-firing =50% were afforded a subsidy banding of ROC x 0.5.

The affected codes are: Wood Pellet Industrial Spread UK - Prompt 100% dedicated 30% efficiency GBP/MWh GBP WPSZD30 Wood Pellet Industrial Spread UK - Prompt 100% dedicated 35% efficiency GBP/MWh GBP WPSZD35 Wood Pellet Industrial Spread UK - Prompt 100% dedicated 40% efficiency GBP/MWh GBP WPSZD40 Wood Pellet Industrial Spread UK - Prompt 100% dedicated 30% efficiency Eur/MWh EUR WPSTD30 Wood Pellet Industrial Spread UK - Prompt 100% dedicated 35% efficiency Eur/MWh EUR WPSTD35 Wood Pellet Industrial Spread UK - Prompt 100% dedicated 40% efficiency Eur/MWh EUR WPSTD40 Wood Pellet Industrial Spread UK - Prompt =50% co-fired 30% efficiency GBP/MWh GBP WLSZL30 Wood Pellet Industrial Spread UK - Prompt =50% co-fired 35% efficiency GBP/MWh GBP WLSZL35 Wood Pellet Industrial Spread UK - Prompt =50% co-fired 40% efficiency GBP/MWh GBP WLSZL40 Wood Pellet Industrial Spread UK - Prompt =50% co-fired 30% efficiency Eur/MWh EUR WLSTL30 Wood Pellet Industrial Spread UK - Prompt =50% co-fired 35% efficiency Eur/MWh EUR WLSTL35 Wood Pellet Industrial Spread UK - Prompt =50% co-fired 40% efficiency Eur/MWh EUR WLSTL40 These changes took effect on Friday, April 8. Please address any queries to gareth.carpenter@platts.com with a cc to pricemethodology@platts.com