Platts clarifies North California 70 CI rail car ethanol MOC process

S&P Global Platts would like to provide additional clarity regarding the expectations of performance of North California 70 CI rail car ethanol trades published in the Platts Market on Close assessment process, specifically around carbon intensity (CI) differences.

As stated in a subscriber note published April 1, Platts expects buyers and sellers of a trade published in the MOC process to apply a value normalization based on the CI of the ethanol that is physically delivered. The full subscriber note is available here: www.spglobal.com

Platts would like to clarify that this normalization can either be via direct payment or the transfer of carbon credits (partial obligation), with the seller retaining the option to choose the method of compensation. Platts would expect the seller to notify the buyer of this by the close of business on the day of the trade.

Platts would like to further clarify that as part of any direct payment buyers and sellers are expected to apply a value normalization based on the value per point of CI per gallon of ethanol on the day of the trade. Platts publishes this value under symbol ACIVA00.

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