Lithuania’s Parliament opens way for biofuel exchange

In a vote of 85 to zero, with ten abstentions, on Tuesday the parliament adopted a respective Law on Energy Resources Market, which provides for the establishment of a biofuel exchange.

The exchange would benefit small suppliers, Social Democratic MP Birutė Vėsaitė, member of parliamentary Economics Committee, said. “Many jobs, including jobs for tree fellers ..., will be created,” she said.

Social Democratic MP Juozas Olekas projected that heat prices would go down in various Lithuania’s regions, which would boost the use of biofuel for heat generation. “We are very late with biofuel’s market entry,” he said.

President Dalia Grybauskaitė earlier said that the adoption of this bill was one of the key milestones while seeking to enhance the country’s energy independence.

The exchange would trade in stocks of petroleum products and natural gas as well as in additional instruments hedging against fluctuations in energy prices. The exchange is expected to be launched by the beginning of the next heating season. The new platform, which will be fully or majority owned by the state, should enable heat suppliers to buy fuel at lower costs.

The existing legislation does not regulate the operation of biofuel and oil product exchanges.