Platts to launch new US low-carbon methanol assessments

Platts, part of S&P Global Commodity Insights, will launch a daily low-carbon methanol marine fuel assessment in the US, effective Nov. 17.

Platts previously proposed to launch this assessment in a subscriber note which can be found here.

The new assessments will aid pricing transparency in the methanol marine fuel market amid the evolution of the international maritime regulatory framework, and will replace existing carbon-accounted methanol assessments, which are to be discontinued as communicated to the market in a subscriber note here.

The assessment reflects material supplied on the following terms:

Carbon intensity: Maximum 32.9 gCO2e/MJ. In accordance with the prevailing EU Renewable Energy Directive, any transport biofuel must meet a minimum of 65% reduction in greenhouse gas emissions against the 94 gCO2e/MJ comparator, which is 32.9 gCO2e/MJ.

Non-biological origin renewable fuels must demonstrate a minimum of 70% reduction in GHG emissions against the 94 gCO2e/MJ comparator, amounting to 28.2 gCO2e/MJ. FuelEU Maritime regulations affect any intra-EU/European Economic Area journeys, as well as journeys to and from EU/EEA countries.

Globally, FuelEU Maritime regulations, which affect any intra-EU/European Economic Area journeys as well as journeys to and from EU/EEA countries, remain the most formalized and underpin the shipping industry's commitments globally.

As such, this new assessment will consider methanol, which can meet the above GHG reduction requirements.

Certification: The low-carbon methanol bunker stems must adhere to a proof of sustainability obtained in the framework of voluntary schemes approved by the European Commission, such as ISCC or any other recognized industry equivalent.

Physical specifications: The methanol must conform to the latest International Methanol Producers and Consumers Association (IMPCA) Reference Specification with a minimum purity of 99.85%, maximum water content of 0.1% by weight and maximum ethanol content of 50 mg/kg.

Logistics costs: The Houston ship channel delivered low-carbon MMF price assessments include logistics costs from the terminal to the barge and charges for delivery into the receiving vessel.

Market information for product with other specifications and non-standard terms may be considered for the assessment and may be subject to normalization to the standard specifications and terms.

In the absence of bids, offers, trades and other pricing information about deliveries in the US, Platts may use a netback calculation based on the low-carbon methanol marine fuel delivered Rotterdam assessment.

The US Gulf Coast assessments are assessed at 1:30 pm Central Standard Time and follow the US publishing schedule.

The assessments will appear on Platts Connect, in Europe and US Petrochemicalscan and Solventswire, and on Platts Price Point database.

Details of the existing Platts assessments for low-carbon methanol marine fuel can be found in the subscriber notes for Singapore, as well as for Shanghai and Rotterdam.

Please send all feedback, comments and questions to petchems@spglobal.com and pricegroup@spglobal.com.

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