Platts proposes launch of Ethanol T2 FOB Rotterdam minimum 80% GHG savings assessment

Following a formal public consultation and review, S&P Global Platts is proposing to launch an assessment reflecting the value of T2 FOB Rotterdam ethanol with minimum greenhouse gas savings of 80%, effective January 4, 2021.

This assessment would be published as a differential to the Ethanol T2 FOB Rotterdam assessment, in Eur/cu m.

This proposal follows market feedback demonstrating interest in further transparency in the ethanol with greater GHG savings. Although the threshold of GHG savings may differ from country to country in this space and may be impacted by market fundamentals, ethanol with 80% GHG savings was indicated as a level at which the pricing of a differential would be most distinct. This level was also indicated to be relevant to countries that have strong consumption of ethanol with high GHG savings.

Platts launched a formal public consultation on its European T2 ethanol assessments March 16: https://www.spglobal.com/platts/en/our-methodology/subscriber-notes/031620-platts-opens-consultation-on-ethanol-t2-fob-rotterdam-assessments.

This proposal is one of three to emerge from this consultation, alongside a proposal to increase the minimum GHG savings reflected in the Platts Ethanol T2 FOB Rotterdam assessment to 60%, and one to discontinue the Ethanol T2 FOB Rotterdam German Spec assessment.

Please send all feedback, comments or questions to europe_ags@spglobal.com and pricegroup@spglobal.com by June 26, 2020.

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.