Platts proposes to update RD North Asia cost of production methodology, effective April 21, 2026

Platts, part of S&P Global Energy, proposes to update its North Asia Renewable Diesel (RD) cost of production calculated assessment, effective April 21, 2026.

Platts recognizes that factors such as input fixed costs have evolved since the initial launch of the cost of production price in 2021, and that technological developments and operational practices continue to influence the cost structure of RD production.

Based on market feedback, Platts proposes to update the methodology to use S&P Global Energy's Process Economic Program values, which include inputs such as feed rates, CAPEX, yield, and fixed costs.

The assessment reflects the production cost of RD produced via the Hydrotreated Esters and Fatty Acids (HEFA) pathway, using used cooking oil (UCO) and hydrogen as feedstock.

Coproducts include propane and naphtha/gasoline, and utility costs considered are natural gas and electricity. The Platts daily prices for feedstocks, coproducts, and utilities are considered.

Platts would also consider royalties, plant front costs such as front license payment, and engineering.

The main proposed changes are listed below:

The assessments that would be impacted by this change are listed in the table below:

The assessments' related monthly averages would also be impacted.

Platts may update the HEFA cost of production prices at least annually. These updates, when needed, will reflect changes in fixed costs and depreciation whenever there are changes to the prevailing Process Economic Program values released by S&P Global Energy.

Platts publishes the RD cost of production (UCO) North Asia prices in Platts Connect, Biofuelscan, Biomass-Based Diesel Report, US Marketscan, Oilgram Price Report, and fixed pages PB2013, RF2404, and RF2414.

Please submit any feedback, comments, or questions to platts_biofuels@spglobal.com and pricegroup@spglobal.com by March 24, 2026.

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.