Platts proposes to raise Ethanol T2 FOB Rotterdam Premium assessment GHG savings, launch eWindow instrument

Platts, part of S&P Global Commodity Insights, proposes to increase the minimum greenhouse gases savings specification for its T2 Ethanol FOB Rotterdam Premium assessment (AASNR00) from 85% to 90%, equivalent to a carbon intensity of 9.4 g CO2e/MJ, based on a fossil fuel comparator of 94 g CO2e/MJ, under the European Commission's Renewable Energy Directive (RED) II & III, effective Oct. 6.

The Ethanol T2 Premium assessment would be on an FOB Antwerp-Rotterdam-Amsterdam basis, with a volume of 1,000 mt and a single strip laycan of 3-15 days forward (Monday to Tuesday) or 5-15 days forward (Wednesday to Friday).

Platts would also rename the Ethanol T2 Premium assessment to Ethanol T2 High GHG savings, FOB Rotterdam. Platts would publish the ethanol price as an outright value and as a premium to the Ethanol T2 FOB Rotterdam assessment, in Eur/cu m.

Platts is also proposing to add the Ethanol T2 High GHG Savings FOB Rotterdam assessment into the eWindow communication tool, effective Oct. 15.

Under this proposal, participants would be able to submit bids and offers for publication either directly through the eWindow communication tool or via a price reporter. Bids and offers would be submitted as a differential to the Platts T2 FOB Rotterdam benchmark assessment (AAYDT00) or as an outright price in Eur/cu m.

In addition, Platts proposes to require the Nabisy Proof of Sustainability documentation and transfer via the Nabisy system as a standard requirement for all Ethanol T2 high GHG savings FOB Rotterdam barge indications in the Platts Market on Close assessment process.

Nabisy is Germany's web-based application for sustainable biomass, operated by the Federal Office for Agriculture and Food.

As part of this proposal, Platts would also make as standard practice the averaging of GHG savings across Proof of Sustainability (PoS) certificates. The weighted average of GHG savings across provided PoS certificates for a parcel traded in the MOC should meet a minimum of 90% GHG savings, equivalent to a maximum CI of 9.4 g CO2e/MJ.

However, individual PoS certificates should not fall below 64.3% GHG savings, equivalent to a maximum CI of 33.52 g CO2e/MJ, unless mutually agreed otherwise.

In addition, taking into account the 3/5-15 days forward traded strip, buyers should give 48 clear working hours for nomination. Counterparties are expected to perform on trades published in the MOC in line with standard market practice.

Full details on Platts T2 Ethanol benchmark assessment can be found in the Global Biofuels specifications guide.

Please send any comments or feedback to mrts_biofuelsandfeedstocks@spglobal.com and pricegroup@spglobal.com by Sept. 2.

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.