Platts increases minimum GHG savings in Ethanol T2 FOB Rotterdam assessment

Following a formal public consultation, proposal and review, S&P Global Platts has changed the specification on fuel grade ethanol reflected in its Ethanol T2 FOB Rotterdam assessment, specifically with regard to greenhouse gas (GHG) savings, effective Jan. 4, 2021.

GHG savings in the EU are measured as an absolute level of carbon intensity (CI), or as a percentage GHG saving compared to the fossil fuel comparator.

From Jan. 4, the Platts Ethanol T2 FOB Rotterdam assessment reflects ethanol meeting a maximum CI of 33.52g CO2e/MJ. This is equivalent to a minimum GHG saving of 60% based on a fossil fuel comparator of 83.8g CO2e/MJ under the European Commission's Renewable Energy Directive (RED) I framework.

The Platts Ethanol T2 FOB Rotterdam assessment previously reflected a minimum GHG saving of 50%, equivalent to a maximum CI of 41.90g CO2e/MJ. This is in line with the legal minimum standard of 50% GHG savings under the RED I framework.

Platts understands that material meeting a maximum CI of 41.90g CO2e/MJ remains an important element of the European market.

As such, in addition to publishing bids, offers and transactions for ethanol meeting a maximum CI of 33.52g CO2e/MJ during the Platts Market on Close assessment process, Platts continues to publish bids, offers and transactions for ethanol meeting a maximum CI of 41.90g CO2e/MJ.

Pricing data reflecting material with a maximum CI other than 33.52g CO2e/MJ may be normalized back to this standard.

The EU intends to increase the fossil fuel comparator from 83.8g CO2e/MJ to 94.0g CO2e/MJ under the RED II directive. A maximum CI of 33.52g CO2e/MJ would imply GHG savings of 64.3%, using the fossil fuel comparator of 94.0g CO2e/MJ stated in RED II.

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