Platts proposes to launch new Northwest European bio-naphtha assessments Sept. 1

Platts part of S amp P Global Commodity Insights is proposing to launch bio naphtha assessments in Northwest Europe effective Sept 1 2023

Platts has observed growing supply and consumption of bio-naphtha in Northwest Europe on the back of a rapid expansion in European bio-refining capacity.

The growth in demand for bio-naphtha is driven in part by the transition to lower carbon fuels where bio-naphtha is used as a gasoline blending component, as well as increasing usage from petrochemical crackers that in turn supply bio-based feedstocks for consumer plastics production.

The assessment would reflect parcels of 1,000-2,000 mt of bio-naphtha, loading five to 15 days forward on an FOB ARA (Amsterdam-Rotterdam-Antwerp) basis. Other locations within Northwest Europe may be considered for the assessment but may be normalized to reflect loadings basis ARA.

Platts is proposing to publish the bio-naphtha assessment on an outright basis and also as a differential to the benchmark Platts CIF NWE naphtha cargo assessment (PAAAL00), reflecting typical trading practices.

The assessments would be published in both $/mt and Eur/mt, time-stamped at 1630 London time.

The proposed bio-naphtha assessments would exclude material produced from palm-based feedstock and mirror-applicable specifications set out in the Platts CIF NWE naphtha methodology, reflecting open specification material with a minimum 65% paraffin content and a typical density of 0.69 kg/l to 0.735 kg/l. In addition, the assessments would reflect material that adheres to the ISCC+ certification scheme, while material adhering to ISCC EU certification may be considered for the assessment, subject to normalization.

Requests for Kosher or Halal certifications should not be unreasonably rejected by the seller in accordance with typical trading practices.

These assessments would also reflect material with sustainability documentation showing a minimum greenhouse gas saving of 50% when compared with the fossil fuel comparator, as per the EU's Fuel Quality Directive calculation.

This operates in addition to the prevailing Renewable Energy Directive (RED II) requirement, with the highest requirement for GHG savings taking precedence.

Please send any comments or feedback by July 28 to europe_products@spglobal.com, MRTS_biofuelsandfeedstocks@spglobal.com, petchems@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.