Platts to introduce German ethanol assessment

Following discussions with industry participants, Platts will introduce a European fuel-grade, undenatured ethanol price assessment for the German market on July 1, 2011. The assessment will be basis FOB Rotterdam T2 in euro/cubic meters reflecting fuel-grade ethanol that holds sustainability certificates issued any certification system recognized by the German Federal Agency for Agriculture and Food (Bundesanstalt fuer Landwirtschaft und Ernaehrung, or BLE).

Up to the present time, two systems -- ISCC and REDcert -- have been approved by the BLE as valid issuers of sustainability certificates as set by the German Biomass Sustainability Ordinance (Biokraft-NachV).

Should other certification systems be recognized by the BLE, those will also be considered in the Platts assessment process.

In addition, should the European Commission approve any supranational sustainability certification systems -- know as voluntary schemes -- those will also be taken into account in the assessment process.

Assessments are for ethanol conforming to the latest edition of the standard EN 15376 specifications for automotive fuels ethanol as a blending component to gasoline. The ethanol must also conform to the Netherlands' customs TARIC code of CN 2207 1000, under the European Commission's latest definition of "undenatured ethyl alcohol of an alcoholic strength by volume of 80% vol or higher."

For feedback and queries please contact Ilana Djelal at ilana_djelal@platts.com, with copy to petchems@platts.com and pricegroup@platts.com.