Platts to launch daily market-based European renewable diesel assessments

Platts, part of S&P Global Commodity Insights, will launch daily renewable diesel (RD) assessments, effective May 1.

Platts has observed growing liquidity in the European renewable diesel market, driven by EU policies like the Renewable Energy Directive and ReFuelEU, in addition to individual country programs that support the decarbonization of the transport and heating sectors.

Platts will launch two categories of RD assessments, under the names RD-A and RD-B.

After consulting with the market, Platts is looking to assess the most liquid specifications for RD in Europe, focusing on feedstocks in Annex IX of the Renewable Energy Directive (RED).

The RD-A assessments will reflect renewable diesel produced from Renewable Energy Directive Annex IX-A waste and residue feedstocks, as listed in the Netherlands Energy for Transport register.

The RD-B assessments will reflect renewable diesel produced from feedstocks in Annex IX-B of the European Renewable Energy Directive.

Based on additional market feedback, Platts will assess both the outright prices of RD-A and RD-B alongside the premium to the benchmark Platts ULSD FOB ARA barge assessment (AAJUS00).

The RD assessments will be FOB basis Amsterdam Rotterdam Antwerp and reflect volumes of 1,000-3,000 mt.

Volumes outside this range will be normalized to basis 1,000 mt.

Other locations within Northwest Europe would be considered for the assessment but will be normalized to reflect basis ARA.

The assessments will reflect barges loading 3-15 days forward (Monday-Tuesday) and 5-15 days forward (Wednesday-Friday) from the date of publication.

The new RD assessments will meet standard EN15940 with a minimum of 85% greenhouse gas savings under RED II.

Other GHG savings levels may be considered and normalized to a min 85% GHG savings.

The new assessments will reflect product that holds proof of sustainability obtained in the framework of voluntary schemes approved by the EU Commission.

Market participants shall exercise reasonable efforts to provide all necessary documentation for Proof of Sustainability documentation.

The assessments will consider market information reported to Platts and published throughout the day, including firm bids and offers, trades, and indicative values, as well as any other data deemed relevant to the assessment process.

The RD prices will be published as an outright price in dollars per metric ton and dollars per cubic meter, as well as premiums to the Platts ULSD FOB ARA barge assessment.

A summary of the assessment launches is as follows:

The methodology and specifications for the diesel assessments can be found here: https://www.spglobal.com/commodityinsights/PlattsContent/_assets/_files/en/our-methodology/methodology-specifications/europe-africa-refined-products-methodology.pdf

The assessments will reflect a 4:30 pm London time market close and will follow the London publishing schedule.

The new RD FOB ARA prices will be published in addition to Platts production cost-based RD/HVO prices.

Please submit any feedback, comments, or questions to mrts_biofuelsandfeedstocks@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 upon request.