Platts launches Japanese ammonia-coal energy price spreads

Platts, part of S&P Global Commodity Insights, will launch new daily energy price spreads between ammonia and thermal coal prices for Japan, effective Oct. 28, 2024.

The spreads reflect the price comparison between low-carbon ammonia and thermal coal delivered to Japan on an energy parity basis. Ministry of Economy, Trade and Industry in Japan has drafted a contract for difference scheme under which the Japanese government will pay the difference between low-carbon hydrogen and derivatives and existing fuels prices such as coal and LNG to promote the supply of low-carbon hydrogen in Japan.

Platts publishes the following spreads in $/MMBTU:

• Renewable-derived ammonia (GADAA04, GADAG04 and GADAC04) versus NEAT coal energy price (JKTCB00)
• Japan Korea Ammonia Price, JKAP, (AJKCB00) versus NEAT coal energy price (JKTCB00)

These spreads will be published in Coal Trader International.

Platts previously published a proposal note on July 26 and a decision note on Aug. 26 relating to the new prices.

In line with the notification to the market published on Sept. 2, these spreads will continue to be published in the form of a graph in Platts Hydrogen Daily.

Please address any questions or comments to hydrogenassessments@spglobal.com and pricegroup@spglobal.com.

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