The Biomass Trading Floor of the Polish Power Exchange starts

In accordance with previous announcements during last week of April the Polish Power Exchange is going to start the Biomass Trading Floor, being the internet-based trading platform. The Biomass Trading Floor will compose the first step leading to transparent and commonly available biomass market in Poland.
The Biomass Trading Floor is one of the components of the process of execution the POLPX Company development strategy, which not only encompasses efforts aimed at increasing of liquidity of the electricity markets but which also stresses creation of a place for trading in fuels needed for generation of electricity such as biomass or – in future – gas and coal.

The Polish Power Exchange creates the trading floor that will enable entering into the biomass sale/purchase transactions in the auction system and in the offer table system. Such form of the transactions is the most optimum for such type of the raw material. Both the offer tables and auctions enable detailed description of the transaction object, while information concerning the auctions will be delivered in significant advance. The transaction parties know they have entered into the transaction with whom only after entering into the transaction. Such manner of entering into transactions enables market objectivism and transparency.

“I’m hopeful that start of the Biomass Trading Floor in Poland will cause growth of interest in such raw material as the most effective (as regards costs) way for decreasing of the carborn dioxide emission into atmosphere. Such problem is especially essential in the context of the requirements coming from the EU Climate and Power Package brought into force by the European Commission” – Mr. Dariusz Bliźniak, the POLPX Vice-president said.

Any entity involved in production of solid biomass, raw materials used for the biomass production, biomass firing as well as biomass intermediate trade may be participant of the Biomass Trading Floor.

Recently we can notice dynamic increase of electricity generation in power stations and combined heat and power plants, which use co-combustion technology. During the year of 2009 amount of 4 143 332 MWh was generated, that means increase by 51% in relation to the year of 2008. Moreover we can still notice that share of biomass in production of electricity coming from RES remains at high level. In 2010 the share amounted to 56%.

The biomass is third (as regards amount) natural energy source in the world. It is proper to use it because of numerous reasons. First and foremost combustion of biomass does not adversely affect the environment. Amount of carbon dioxide being emitted into atmosphere during biomass combustion process is balanced by amount of carbon dioxide being absorbed by plants, which produce the biomass during the photosynthesis process. heating with use of biomass also becomes profitable.

In accordance with the UE definition the biomass means fractions – biologically disintegratable – of products, wastes and remainders of agricultural industry (including vegetable and animal substances), forestry and connected economy branches, as well as the biologically disintegratable fractions of industrial- and municipal wastes (Directive No 2001/77/WE).

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About the POLPX
The Polish Power Exchange (the POLPX) was established at the end of 1999 on the grounds of the Minister of Treasury initiative. Its operational activities were started on the day of June the 30th 2000, when first contracts for delivery of electricity were concluded on so-called Day-Ahead Market. At present the POLPX runs the following markets: the Day-Ahead Market, the Commodity Derivatives Market with physical delivery, the Financial Derivatives Market and the Property Rights Market for electricity coming from RES and CHP sources. The POLPX also keeps the Certificate of Origin Register for electricity coming from the Renewable Energy Sources and from high-efficient CHP units as well as the CO2 Emission Allowances Market.
The Polish Power Exchange has in its disposal the modern CONDICO exchange system delivered by NASDAQ OMX – the exchange operator and the world biggest company that designs quotation- and settlement systems used by many exchanges worldwide (more than 40 implementations on various exchanges). More information about the POLPX: see http://www.tge.pl

Additional information is given by:
Dariusz Bliźniak
The POLPX Management Board Vice-president
Phone number +22 341 99 12
e-mail: dblizniak@tge.pl