Platts launches US West Coast RD ex-refinery prices

  • Prices based on analyzed cost inputs
  • Published with environmental credits and without credits, in cents/gal, $/mt and $/b

S&P Global Platts has launched new renewable diesel (RD) valuations for the US West Coast, to be called Platts US West Coast RD, effective Dec. 1, 2020.

Platts has observed growing interest in renewable fuels across the transportation markets in part driven by the transition to lower carbon fuels. Markets in many of these commodities have not yet reached sufficient volumes to support spot price assessments. Platts has analyzed the costs involved and is now publishing calculated values that reflect this as a cost-based price for RD.

The primary RD value is published in cents/gal inclusive of environmental credits. Platts publishes an additional value without environmental credits by deducting the value of Renewable Identification Numbers under the Renewable Fuel Standard, credits from the Low Carbon Fuel Standard administered by CARB and, when applicable, the federal biomass-based diesel blender's tax credit.

The values with and without credits are also published in $/mt using a 3.39 conversion factor and in $/barrel using a 0.42 conversion factor. This implies a $/mt to $/b conversion factor of 8.071.

The USWC RD prices are ex-refinery basis California reflecting ASTM D975 standard specification, with a relative density of 779 kg/cu m (at 15 degrees Celsius).

The ex-refinery prices are based on relevant costs and are published under the following symbols and units:

Unit
PGA - w/ credits
PGA - w/o credits
PBF - w/ credits
PBF - w/o credits
cents/gal
ARDFI00
AR DFJ00
ARDFK00
ARDFL00
$/mt
ARDFA00
ARDFB00
ARDFC00
ARDFD00
$/barrel
ARDFE00
ARD FF00
ARDFG00
ARDFH00

The prices are published on Platts Global Alert, Platts Biofuels Alert, and in European Marketscan, US Marketscan, APAG Marketscan, Oilgram Price Report and Biofuelscan.

The valuation assumptions are calculated by S&P Global Platts Analytics based on existing Platts assessments and other fixed costs. Fixed costs will be reviewed on at least an annual basis. Platts will review the specifications and assumptions going forward based on market feedback and as markets develop.

The RD inputs are Packer Grade Beef Tallow Dlvd Chicago (ATALA00) and Hydrogen California SMR w/o CCS (incl CAPEX) (IGZBL00), added to fixed renewable diesel refinery costs, then deducting the byproducts of Gasoline Unl 84 Los Angeles CA Pipeline (AAUHA00) and Propane non-LST Mt Belvieu pipe Mo01 (PMAAY00).

Platts may normalize the Chicago packer-grade tallow assessment to account for freight to California and a quality differential between packer tallow and an alternative grade used for RD production.

The Platts-published environmental credits deducted for the values without credits are Biodiesel RIN Cal Yr02 (BDRCY02) and the Low Carbon Fuel Standard Carbon Credits Front Quarter (AAXYA00).

The launch follows Platts first-to-market Northwest European SAF and HVO (hydrotreated vegetable oil, which is equivalent to renewable diesel) valuations launched on Aug. 17 and US West Coast SAF on Sept. 21, as well as extensive consultation of producers, consumers, traders and others in the European and US oil and biofuel markets as RD grows in consumption and supply.

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