02 Jun 2020 | 23:25 UTC — London

Platts proposes to increase minimum GHG savings in Ethanol T2 FOB Rotterdam assessment to 60%

Following a formal public consultation and review, S&P Global Platts is proposing to amend the minimum greenhouse gas savings on fuel grade ethanol reflected in its Ethanol T2 FOB Rotterdam assessment to 60%, from a current minimum of 50%, effective January 4, 2021.

This is in line with market feedback indicating that ethanol with minimum GHG savings of 60% represents the most fungible portion of the European ethanol market. Higher mandates in several European countries have supported increasing demand for product with greater GHG savings.

Platts understands that material meeting the EU's Renewable Energy Directive (RED) minimum standard of 50% GHG savings remains an important element of the European market.

As such, in addition to publishing bids, offers and transactions for ethanol meeting a minimum GHG saving of 60% during the Market on Close assessment process, Platts will also publish bids, offers and transactions for ethanol meeting a minimum GHG saving of 50%. Pricing data reflecting material with minimum savings other than 60% may be normalized back to this standard.

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 discontinue the Ethanol T2 FOB Rotterdam German Spec assessment, and one to launch an assessment of Ethanol T2 FOB Rotterdam reflecting material with a minimum GHG saving of 80%.

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.