Platts proposes to launch Asia POME assessments Jan. 2

Platts, part of S&P Global Commodity Insights, proposes to launch daily Palm Oil Mill Effluent (POME) assessments in Asia, effective Jan. 2, 2024.

Platts has observed a growing market interest in POME, which is a wastewater generated by palm oil processing mills in Indonesia and Malaysia and has increasingly become an important feedstock to produce biofuels amid rising global biodiesel demand.

Platts proposes to assess both POME basis FOB Indonesia and POME FOB Malaysia.

The two new POME FOB Indonesia and FOB Malaysia assessments will reflect product that allows for free fatty acids minimum 50%, a maximum 4% moisture content, and total fatty matter of minimum 95% following feedback from the market.

The assessments will reflect a typical bulk volume of 2,000-5,000 mt.

Other volumes and specifications may be considered but would be normalized back to the reference.

It must also adhere to the ISCC certification scheme, in compliance with the EU's Renewable Energy Directive or RED requirements.

The FOB Indonesia assessment would reflect parcels loading out of Dumai and Belawan.

The FOB Malaysia assessment would reflect parcels loading out of Port Klang and Pasir Gudang.

The assessments would reflect parcels loading over a two-month period starting one-month forward.

The assessment laycan will roll over to the next two calendar months on the first publication day after the 15th.

For example, from July 16 to Aug. 15, the POME assessments would reflect parcels shipping over September-October, while from Aug. 16 to Sept. 15, the assessment would reflect parcels shipping over October-November.

The assessments would be published in dollars per metric ton, reflect a 6 pm Singapore time market close and follow the Singapore publishing schedule.

Please submit any feedback, comments, or questions to mrts_biofuelsandfeedstocks@spglobal.com and pricegroup@spglobal.com by Oct. 31.

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.