Wood Pellets

Biomass trading – let's put a price on heating!

Wood pellets futures

Wood pellets futures now available to trade

The energy industry is now able to manage its risk and protect its margins on one of the key developing sources of renewable energy: wood pellets.

Wood pellets have experienced exponential growth over recent years. They are seen by many as:

  • an alternative source of renewable energy,
  • cleaner and more efficient than wood,
  • cheaper than other fuels.

Developed in close cooperation with the biomass community, the new futures contracts have been designed to meet the needs of market professionals looking for portfolio diversification and price hedging tools against fluctuations in the prices of pellets or closely-related products. These fluctuations are mainly caused by changes in economic supply and demand, availability of raw materials and winter weather seasonality patterns.

Available to trade in a transparent and secure environment, wood pellet futures use the European Pellet Council ENplus A1 certification as a base for the underlying of the futures contract.

Access delayed prices and download contract specifications
Residential Wood Pellets: Contract Specifications

Cleared swap on Wood Pellets RWP/IWP price spread

Coming soon: Euronext is working with Argus to launch a cleared swap on the Residential Wood Pellets / Industrial Wood Pellets price spread. Contact the Euronext Commodities team for more details.

Wood Pellets in the news: cheapest source of heating energy

Propellet, France’s association for wood pellet heating professionals:
Propellet’s index of energy prices shows that wood pellets are still the cheapest source of heating energy. Households across Europe are very likely to switch to this renewable, low carbon source of heating.

Propellet France interviewed Euronext’s Vincent Roiron in its October 2015 Newsletter. Read the interview (in French) here (Propellet Newsletter) and find more about our futures contract, the players in this market, how the contract can support professionals across the supply chain, and more.

Press release: [English] [French] [German]

To find out how these contracts can help in your hedging or investment strategies, please contact us:
commodities@euronext.com