European wood chip price index launched

Oct. 7,
2010, London, UK – Global energy price reporting agency Argus has expanded its
coverage of the biomass market with the launch of a weekly price index for
industrial wood chips delivered to northwest Europe. Argus is also launching
forward price assessments for wood chips up to 2012.

The
launch comes in response to growing demand for an independent price reference
for wood chips, which are expected to become one of the main fuels for new
biomass-fired power generation capacity planned in the EU in line with targets
on the expansion of renewable energy. More than 4 GW of biomass-fired capacity
is planned in the UK alone.

Price
assessments for the wood chip market build on Argus' coverage of the industrial
wood pellet market, which was launched in May 2009. Wood pellets, and
increasingly wood chips, are widely acknowledged as the most advanced biomass
products in terms of commoditization and the ability to trade under standard
terms. Wood chip and pellet price assessments are published in Argus Biomass
Markets, a weekly report that also provides analytical market commentary, news,
and analysis of generation economics.

Argus has
set out a list of standard product specifications for its wood chip coverage,
following consultation with market participants. Argus specifications for wood
chips and wood pellets are listed in the methodology for Argus Biomass Markets,
which is available online at www.argusmedia.com/methodology.

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