EURONEXT to offer Residential Wood Pellets future contract

Pan-European financing centre Euronext has recently announced the launch of its Residential Wood Pellets future contract on 20 November this year, a new product that Euronext will offer to producers, wholesalers and retailers to hedge pellet (and other closely related biomass products) price exposure. Lee Hodgkinson, Head of Markets and Global Sales at Euronext, explains that “One of the key reasons for the launch of this product is the exponential growth we have seen in recent years in wood pellets as an alternative source of renewable energy. In the light of the United Nations Climate Change Conference to be held in Paris in the autumn this year, Euronext is delighted to be offering the real economy a product that supports renewable energy initiatives. We are confident in the future success of this product as, in addition to new interest from within the industry, many of our existing clients are looking for a way to hedge their prices in this sector”. Christian Rakos, President of the European Pellet Council (part of AEBIOM) reacted by saying that “this is an important initiative for the pellet industry as it provides a clear response to the high volatility we have seen recently in pellet pricing. It will offer a hedging tool that will allow our members to manage their risk from production to purchase to sales. The European Pellet Council is delighted that Euronext will be using our ENplus A1 certification as a base for its future contract. We believe this initiative will contribute to reinforce and structure the sector.”