S&P Global Platts proposes, effective March 2, 2020, to launch a new daily spot physical assessment for Used Cooking Oil Methyl Ester (UCOME) FOB ARA and a new daily spot physical assessment for Used Cooking Oil (UCO) CIF ARA. The proposal is in line with interest for more transparent pricing in a growing waste and residues market in Europe, as part of increasing targets under the Renewable Energy Directive (RED) II.
UCOME FOB ARA
The UCOME FOB ARA assessment would reflect the daily traded or tradable value for UCOME loading barge basis FOB Amsterdam-Rotterdam-Antwerp, for product with a minimum of 87% GHG savings when compared to the fossil fuel comparator, as per the European Union's Fuel Quality Directive calculation.
The assessment would reflect material meeting the EN14214 specification, with a maximum CFPP of 0 degrees Celsius and a maximum water content of 350 ppm. The assessment would also reflect RED and German mandate compliant material eligible for UK and Dutch double-counting.
The assessment would reflect barges loading 3-15 days forward (Monday-Tuesday) and 5-15 days forward (Wednesday-Friday) from the date of publication, for a volume of 1000 - 3000mt
Platts proposes to publish UCOME price assessments as premiums in $/mt as well as outright values in Eur/mt using the weighted average value of the front month(s) ICE low sulfur gasoil future(s) across the date range reflected in the price assessment.
UCO CIF ARA
The UCO CIF ARA assessment would reflect the daily traded or tradable value for certified UCO, basis CIF ARA.
The assessment would reflect material with a maximum of 5% FFA (or a maximum of 6% from May 16 to August 15 to reflect summer spec), a maximum of 2% MIU (or a maximum of 3% from May 16 to August 15 to reflect summer spec), maximum 50ppm sulfur and a minimum of 80gr iodine per 100gr of biodiesel.
The assessment would reflect UCO parcels of 300-1,500 mt, delivered in shipping containers carrying flexibags. The UCO assessment would reflect vessels loading 15-30 days forward from the date of publication, for delivery on commensurate dates on a CIF ARA basis.
Platts proposes to publish UCO price assessments as an outright value in $/mt.
Both the UCO and UCOME assessments would reflect a market close time stamp of 16:30 London time.
As part of this launch Platts also proposes to discontinue publishing the most competitive bid-offer range heard for UCOME, currently published in the Weekly Global Biodiesel Report and under codes UCOUS04 and UCOEU04.
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 to the public upon request.