Platts proposes to launch Singapore low-carbon methanol marine fuel assessments

Platts, part of S&P Global Commodity Insights, is proposing to launch two new daily low-carbon methanol marine fuel, or MMF, assessments in Asia effective Nov. 11, on increasing pricing transparency seen in the methanol bunkers market and among further evolution of the regulatory framework.

From January 2025 to 2029, under the Fuel EU Maritime regulation, the shipping industry would 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 saving in 2050. The maximum GHG intensity of the marine fuel should not exceed 89.34 gCO2eq/MJ during this period and 85.69 gCO2eq/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 would reflect a delivered to Singapore methanol marine fuel, compliant with EU regulations for journeys into and from EU countries.

This assessment would 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 should meet a minimum of 65% reduction in GHG emissions against the 94 gCO2eq/MJ comparator, which is 32.9 gCO2eq/MJ. Meanwhile, the renewable fuels of non-biological origin should demonstrate a minimum of 70% reduction in GHG emissions against the 94 gCO2eq/MJ comparator, which is 28.2 gCO2eq/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

Also, Platts is proposing to launch a delivered to Singapore methanol marine fuel assessment reflecting the product aligned with the requirements defined by the Maritime and Port Authority of Singapore. At present, Platts understands that the carbon intensity set by MPA is not greater than 90 gCO2eq/MJ.

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

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

These proposed methanol marine fuel delivered Singapore assessments would include the 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.

The assessments would be published on Platts Petrochemical Alert pages PCA 654, 198, 199; Platts Bunker Alert pages PGB 2852, 3963, 3964, Asian Petrochemicalscan Platts Bunkerwire, Platts Connect and Platts Market Center.

Please send all feedback, comments and questions to petchems@spglobal.com and pricegroup@spglobal.com by Oct. 29.

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