Platts launches daily market-based European renewable diesel assessments

Platts, part of S&P Global Commodity Insights, has launched daily renewable diesel (RD) assessments, effective May 1, 2024.

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 has launched two categories of RD assessments, under the names RD-A and RD-B. After consulting with the market, Platts will assess the most liquid specifications for RD in Europe, focusing on feedstock in Annex IX of the Renewable Energy Directive (RED).

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

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 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 meet the EN15940 standard 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 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 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 are published as an outright price in US dollars per metric ton and US dollars per cubic meter, as well as premiums to the Platts ULSD FOB ARA barge assessment (AAJUS00) .

A summary of the assessment launches is as follows:

This launch follows a proposal published on April 8, available here: https://www.spglobal.com/commodityinsights/en/our-methodology/subscriber-notes/040824-platts-proposes-to-launch-daily-market-based-european-renewable-diesel-assessments

A decision to launch the market-based RD price assessments was communicated on April 23, in a note available here: https://www.spglobal.com/commodityinsights/en/our-methodology/subscriber-notes/042324-platts-to-launch-daily-market-based-european-renewable-diesel-assessments

The assessments are published in Platts Biofuelscan and Weekly Biomass Based Diesel report, as well as on Platts Connect and the Platts Biofuels Alert Service line fixed pages PB1010, PB1012, PB1310 and PB1312.

The methodology and specifications for the underlying diesel assessments can be found here: /content/dam/spglobal/ci/en/documents/platts/en/our-methodology/methodology-specifications/Europe-africa-refined-products-methodology.pdf

The assessments reflect a 1630 London time market close and would follow the London publishing schedule.

The new RD FOB ARA prices are published in addition to Platts' production cost-based RD prices.

Please submit any feedback, comments, or questions to mrts_biofuelsandfeedstocks@spglobal.comand pricegroup@spglobal.com.

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