Platts specifies maximum carbon intensity instead of GHG-saving equivalent in European ETBE

Following a formal public consultation, proposal and review, S&P Global Platts has amended its European ETBE methodology to specify a maximum carbon intensity, or CI, of 41.90 grams of CO2 equivalent per megajoule of energy for its ETBE FOB AR assessment, effective Jan. 4, 2021.

A maximum CI of 41.90gCO2e/MJ is equivalent to the minimum 50% greenhouse gas (GHG) savings previously reflected in Platts ETBE assessment specification, based on a fossil fuel comparator of 83.8g CO2e/MJ under the European Commission's Renewable Energy Directive, or RED I, framework.

Platts no longer specifies a greenhouse gas, or GHG, saving percentage equivalent.

Platts confirmed the specification change on Dec. 1 in a subscriber note available here: https://bit.ly/2KRmtjM

That followed a formal proposal on Nov. 18, in the following subscriber note: https://bit.ly/39uTxZj and an extended consultation on GHG savings and fuel quality in European ETBE published on Oct. 12, in the following subscriber note: https://bit.ly/35A9XgJ

The change will affect the following assessments:

Platts ETBE FOB AR spot

Platts ETBE spread FOB AR

Platts ETBE assessments appear on Platts Biofuels Alert pages 1420, 1010, 1011, and 1012, in the Biofuelscan and Fuel Ethanol Report publications, and in Platts Market Data under the following codes: AASLQ00, AASLQ02, AASLQ01, AASLQ04, AASLQ03, AASLQ13.

Platts will be monitoring the implementation of RED II in 2021 and what this will mean for the sustainability criteria for ETBE.

Market feedback indicated a need for clarity in the ETBE specification ahead of the transition from RED I to RED II which will see the fossil fuel comparator change from 83.8gCO2e/MJ to 94.0gCO2e/MJ.

Platts will seek to align its approach with the prevailing comparator used by the market.

A maximum CI of 41.90g CO2e/MJ would imply GHG savings of 55.4%, using the fossil fuel comparator of 94.0g CO2e/MJ stated in RED II.

For further comments or queries, please contact petchems@spglobal.com and pricegroup@spglobal.com.

For written comments, please provide a clear indication if comments are not intended for publication by Platts for public viewing.

Platts will consider all comments received and will make comments not marked as confidential available to the public upon request