Preparation for the heating season is going faster than last year: Lithuanian cities have already purchased a quarter of the required amount of biomass

Lithuanian cities have already purchased 28% of the biomass amount required for the upcoming heating season. According to the international biomass exchange Baltpool, the current number almost twice exceeds the amount purchased at the same time last year.

As evaluation of the preparation for the first half of the upcoming heating season (until the beginning of 2023) reveals, the amount of transactions concluded for the supply of biomass corresponds to 38% of the last year’s demand. Last year, only 22% of transactions were concluded for the first half of the heating season.

Comparing the counties of Lithuania according to the amount of needed biomass purchased, Klaipėda (92%) and Šiauliai (78%) are currently on the top.

“As the latest data shows, the preparation for the upcoming heating season is proceeding at a normal pace. The differences between biomass procurement results of the counties are caused by different fuel procurement strategies, thus results should not be directly compared. For example, some cities have always been buying biomass in advance, and others are used to doing it only during the heating season. The mixed strategy of purchasing biomass is very prevalent as well,” said Vaidotas Jonutis,  Head of Trade Department at Baltpool.

This year, the price of biomass for the winter season (45.28 Eur/MWh) is almost twice as high as the average price of biomass in the same period last year (23.14 Eur/MWh). Yet, compared to the prices in March of the previous season, the increase is about 30%. Looking at the price differences and comparing different counties, the biggest price difference is evident in Curonian Spit (185%, or 55 Eur/MWh) and Klaipėda county (148%, or 55.64 Eur/MWh) The smallest price difference is observed in Šiauliai (84%, or 36.10 Eur/MWh) and Tauragė counties (94%, or 47.83 Eur/MWh).

This year, the process of the biomass price formation has been significantly influenced by the prices of raw wood (mainly firewood and logging residues). In August alone, firewood and panel wood prices (80.50 Eur/m³) increased by 15% compared to July (70.26 Eur/m³⁾ and 133% compared to August of last year (34.66 EUR/m³). The price of logging residues (31 Eur/m³) did not change compared to July, but increased by 210% over the year (from 10 Eur/m³).

For the detailed biomass and heat trade statistics, see the overview.