Biomass for heat and power production – an analysis of market structures

Denmark | June 2010 - January 2011

On behalf of Copenhagen Energy and District heating Fyn, Ea Energy Analyses undertook  an analysis of the market structures for the trading of biomass. The analysis contained an evaluation of the market structures and prices for biomass with focus on wood pellets, straw and wood chips.

Mapping of biomass types and market players
The project included mapping of relevant types of biomass for Danish CHP plants, a review of the most important market players in Denmark and abroad, descriptions of different types of contracts, tendering models and spot market trading, an overview of the prices and costs of local and international transport of relevant types of biomass, and an evaluation of the development of the prices for biomass in the short, intermediate and long term.

The analysis also described the framework conditions for the utilisation of biomass for energy purposes in a few selected countries with the aim of estimating the ability to pay for biomass in these countries compared to the Danish CHP plants’ ability to pay for biomass.

The analysis was carried out for Københavns Energi and Fjernvarme Fyn. It was finalised in January 2011.

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