Platts clarifies HVO ex-refinery NWE specifications

Platts, part of S&P Global Commodity Insights, is clarifying the specifications for the HVO ex-refinery NWE cost-based assessment.

Hydrotreated vegetable oil (HVO), also known as renewable diesel, is an ex-refinery price based on cost calculations generated by S&P Global Commodity Insights.

The cost-based assessment for HVO is published on an ex-refinery NWE basis, and is comprised of a number of existing Platts assessments and other fixed costs.

The HVO inputs are Used Cooking Oil CIF ARA [AUCOA00]and Hydrogen Netherlands SMR [HXNMA00] added to fixed renewable diesel refinery costs, then deducting the by-products to include FOB ARA Propane [PMAAS00] and Naphtha CIF NWE cargoes [PAAAL00].

The assessment is published on an ex-refinery Northwest European basis, reflecting material using used-cooking oil feedstock.

The assessment is published in dollars/mt ($/mt) and reflects parcel sizes of 1,000-3,000 mt of loading 15-30 days forward from the date of publication.

The HVO assessment conforms to EN15940 standards for paraffinic fuels and the assessment reflects a density of 780 kg/cu m .

The assessment reflects parcels with a cold filter plugging point of minus 10 degrees Celsius, with a maximum carbon intensity of 10.89 CO2e/MJ, based on a fossil fuel comparator of 94g CO2e/MJ outlined in the European Commission's Renewable Energy Directive (Red) II framework, equivalent to a minimum GHG saving of 88.4%.

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