Platts launches US low-carbon methanol marine fuel assessments

Platts has launched a daily low-carbon methanol marine fuel assessment in the US, effective Nov. 17.

The new assessment aids pricing transparency in the alternative marine fuel market amid evolution of global policy regulating emissions from the maritime industry, and replaces existing carbon-accounted methanol assessments, which are to be discontinued, as communicated to the market in a subscriber note here.

This assessment was first proposed on Sept. 30 in a subscriber note available here, and then confirmed on Oct. 17 in a subscriber note found here.

The assessment reflects material supplied on the following:

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 GHG 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 EU 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 assessment is assessed at 1:30 pm Central Standard Time and follow the US publishing schedule.

The assessment appears on Platts Connect, in Europe and US Petrochemicalscan and Solventswire, and in Platts Market Data.

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

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