Argus Wood Pellet Index
Methodology of calculation: Akutu Pellet Index
Akutu Pellet Index is an indicator based on assessment of the volume of biomass (wood pellets) in tonnes. Pellets are shipped to the port of Immingham (United Kingdom) for Drax Power Station.
Drax Power Station is the second largest power plant in Western Europe converted to solely biomass, burning 7.5 million tonnes of wood pellets imported mainly from the United States and Canada. Biomass conversion at Drax led to it requiring 82% of UK biomass imports from the USA in 2014 (60% overall of all US wood pellet export), a large factor in a 40% yearly increase in biomass export from that country; USA sourced imports represented 58% of Drax’s biomass use in 2014, with 22% from Canada. [Lowenthal-Savy, Danielle (22 April 2015). “U.K. renewable energy targets drive increased U.S. pellet exports”. U.S. Energy Information Administration. Retrieved 30 April 2015.]
Akutu considers the consumption of pellets by this power plant as a significant factor affecting the market of biomass in Canada, the United States, Great Britain and Northern Europe.
The index includes data on the arrival of vessels from different ports in a 10-day interval. The index reflects the name of the port and the estimate of the volume of cargo using the draft survey.
Initial data is generated by Akutu inc. based on the analysis of data from different sources (GPS, AIS, Trader Survey, Geospatial Intelligence, OSINT) and by using a proprietary algorithm.