Platts European ethanol methodology

Platts has reviewed requests from participants in the European ethanol market to include Sustainability Criteria into its European ethanol assessment process.

Following a meeting held in London on January 11, 2010, and bilateral discussions with market participants, Platts wishes to reiterate that its assessments for European ethanol T1 FOB Rotterdam $/cubic meter, T1 CIF NWE $/cubic meter and T2 FOB Rotterdam Eur/cubic meter, reflect products that are lawfully sourced within the marketplace.

Platts considers in its assessment process ethanol based on its chemical structure and is not currently distinguishing between feedstocks used in its manufacture.

The European Union is contemplating regulations pertaining to sustainability of ethanol that may come into effect later in 2010.

Platts will take steps to integrate provisions of these regulations into its assessment process once they are issued.

In the meantime, Platts will only consider bids, offers and transactions where, upon buyer's request, the seller shall exercise reasonable efforts to provide documentation describing:

1) the ethanol feedstock type; 2) the country of origin of the feedstock; 3) a declaration of land use on which feedstock was grown on or after January 1, 2008.

Platts will not consider ethanol in its assessment process that is in violation of the ILO's Minimum Age Convention 1973, and the ILO's Abolition of Forced Labor Convention 1957.

Please contact Shahrin Ismaiyatim at +44-2071766264 or email shahrin@platts.com copy pricegroup@platts.com for any queries.