Platts to launch Singapore low-carbon methanol marine fuel assessments

Platts, part of S&P Global Commodity Insights, will launch two new daily low-carbon methanol marine fuel, or MMF, assessments in Asia effective Nov. 11, to aid pricing transparency in the methanol bunkers market amid further evolution of the regulatory framework.

The decision follows a proposal period in which Platts gathered feedback from market participants.

The proposal note can be found here.

From January 2025 to 2029, under the Fuel EU Maritime regulation, the shipping industry will need to deliver a 2% GHG intensity saving against the Fuel EU Maritime fossil fuel comparator, with targets stepping up every five years to 80% GHG savings in 2050. The maximum GHG intensity of the marine fuel shall not exceed 89.34 grams of CO2 equivalent per megajoule during this period and 85.69 gCO2e/MJ from 2030 to 2034.

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

MMF low-carbon delivered Singapore

As part of the coverage expansion, the first proposed assessment will reflect a delivered-to-Singapore methanol marine fuel, compliant with EU regulations for journeys into and from EU countries.

This assessment will reflect market prices of the product with sustainability documentation stating a carbon intensity or an equivalent greenhouse gas saving when compared with the fossil fuel comparator, as per the prevailing Renewable Energy Directive.

Under the current requirements, any biofuel shall meet a minimum of 65% reduction in GHG emissions against the 94 gCO2e/MJ comparator, which is 32.9 gCO2e/MJ. Meanwhile, the renewable fuels of non-biological origin shall demonstrate a minimum of 70% reduction in GHG emissions against the 94 gCO2e/MJ comparator, which is 28.2 gCO2e/MJ.

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

MMF delivered Singapore

In addition, Platts will launch a delivered-to-Singapore methanol marine fuel assessment reflecting product aligned with the requirements defined by the Maritime and Port Authority of Singapore. At present, Platts understands that the carbon intensity set by the MPA is not greater than 90 gCO2e/MJ.

Platts recognizes that there are multiple ways to achieve this standard. Platts will reflect any methanol fuel compliant with the prevailing requirements, including the so-called "80:20 blend." This blend comprises 80% conventional methanol (AAWBA00) and 20% low-carbon methanol, which Platts understands has the potential for widespread adoption in the near future.

Similar to other assessments, Platts will prioritize pricing information of actual bids, offers and transactions as well as indications of value. In the absence of spot pricing information, Platts will consider calculating the value based on the "80:20 blend."

These proposed methanol marine fuel delivered Singapore assessments will include logistics costs from the terminal to the barge or truck, and charges for delivery direct to the receiving vessel, as well as the carbon intensity incurred in transporting the product to Singapore. The proposed assessment specifications are as follows:

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. Please send all feedback, comments and questions to 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 make comments not marked as confidential available upon request.