SUBSCRIBER NOTE: Platts proposes CIF NW Europe Industrial Wood Pellet assessment

Platts is proposing to extend its industrial wood pellets coverage by launching a weekly spot market price assessment basis CIF Northwest Europe 17 GJ/t and is seeking industry feedback and comment.

The new assessment would be 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 business day. Prices would be assessed on a Market on Close basis at 5 pm London time.

Industrial I2 wood pellets with the following specifications are proposed to be 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 would reflect the price of wood pellets for delivery seven-45 days forward from the date of publication and would roll forward each day.

Platts also intends to publish 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.

Please address any questions or comments by Friday July 18, to coal@platts.com with a cc to pricegroup@platts.com