S&P Global Platts to Publish Prices Showing Cost to Reduce Carbon Emissions Using Biofuels

September 08, 2021

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(S&P Global Platts/PR Newswire) New prices offer granular look at actual costs of reducing greenhouse gas emissions with biofuels -- S&P Global Platts, the leading independent provider of information and benchmark prices for the commodities and energy markets, today announced it has launched a suite of 36 new daily prices to reflect the cost of reducing greenhouse gas emissions using biofuels.

These new calculations, spreads and ratios use existing Platts assessments in global biofuels, refined product and carbon credit markets to give key insights to the actual cost of carbon emission reductions from biofuel use.

Ian Dudden, Global Pricing Director for Agriculture and Metals, S&P Global Platts, said: "Biofuels have long been at the leading edge of the energy transition toward lower carbon emissions. These prices give traders, analysts and policy makers granular insight into the cost fuel buyers pay to reduce greenhouse gas emissions using biofuels, as well as the price relationships between biofuels and conventional fuels. More stringent climate policies around the globe demand transparency around not just the price of fuels, but the role those fuels play in meeting emissions targets."

The new Platts price calculations, spreads and ratios include:

Spreads and ratios between existing Platts assessments, such as ethanol and gasoline, as well as renewable diesel and fossil-fuel diesel
Values per point-of-carbon-intensity under California's Low Carbon Fuel Standard
Calculated costs of reducing greenhouse gas emissions under Europe's Renewable Energy Directive using Platts biofuel and fossil fuel assessments

Sophie Byron, Associate Pricing Director, Agriculture Americas, S&P Global Platts, said: "These prices, relying on some of Platts' key assessments around the world, can help market participants compare fuels on a carbon emissions basis and build emissions costs into forecasts. With biofuel feedstock demand rapidly increasing, these prices can help the market make informed decisions about the emissions reduction differences between waste products, vegetable oils and other feedstocks."

For example, while Platts' existing assessments give the market a transparent view into the price of biofuels such as rapeseed-based biodiesel (RME) in Europe, the new prices drill down into relationships between RME and ultra-low sulfur diesel (ULSD), both in outright price terms and in carbon costs. Fuel buyers will be able to see that the cost of reducing greenhouse gas emissions using RME instead of ULSD is 0.07 cent for each gram of carbon dioxide equivalent in each megajoule of RME, based on Sept. 1 Platts assessments.

The new price references are the latest edition to the Platts offering related to Energy Transition. For more information, see subscriber note.

About S&P Global Platts
At S&P Global Platts, we provide the insights; you make better informed trading and business decisions with confidence. We're the leading independent provider of information and benchmark prices for the commodities and energy markets. Customers in over 150 countries look to our expertise in news, pricing and analytics to deliver greater transparency and efficiency to markets. S&P Global Platts coverage includes oil, gas, LNG, power, petrochemicals, metals, agriculture and shipping.

S&P Global Platts is a division of S&P Global (NYSE: SPGI), which provides essential intelligence for individuals, companies and governments to make decisions with confidence. For more information, visit www.platts.com. READ MORE

Platts launches global biofuel calculations and spreads (S&P Global Platts)

Excerpt from S&P Global Platts: The following prices represent spreads and ratios between existing Platts assessments:

Description Code

Asia Biodiesel-Gasoil Spread ASIAA00

Asia HVO-Gasoil Ratio ASIAB00

Asia HVO-Gasoil Spread ASIAC00

Asia SAF-Jet Fuel Ratio ASIAD00

Asia SAF-Jet Fuel Spread ASIAE00

Chicago Ethanol-Gasoline Spread ACHIA00

Current-Year D4/D5 RIN Spread ACURC00

Current-Year D4/D6 RIN Spread ACURD00

Current/Next Year D6 RIN Spread ACURA00

Current/Previous Year D6 RIN Spread ACURB00

European Biodiesel-ULSD Spread AEURA00

European Ethanol-Gasoline Spread AEURB00

European HVO-ULSD Ratio AEURF00

European HVO-ULSD Spread AEURG00

European SAF-Jet Fuel Ratio AEURJ00

European SAF-Jet Fuel Spread AEURK00

USWC RD-Diesel Ratio AUSWB00

USWC RD-ULSD Spread AUSWC00

USWC SAF-Jet Fuel Ratio AUSWG00

USWC SAF-Jet Fuel Spread AUSWH00

The following prices represent the value of each point of Carbon Intensity (CI) per gallon of fuel under California's Low Carbon Fuel Standard. The published CI prices per point are calculated using the Platts assessment of front-quarter California LCFS credits ($/mt) and the energy density of the relevant fuel, as published by the California Air Resources Board.

Description Code

Biodiesel CI Value Per Point ABDIA00

CARB Diesel CI Value Per Point ACRBA00

CARBOB CI Value Per Point ACRBB00

CaRFG CI Value Per Point ARFGA00

Renewable Diesel CI Value Per Point ARENA00

USWC SAF CI Value Per Point ASCIA00

USWC RD Credit Value AUSWA00

USWC SAF Credit Value AUSWF00

The following prices represent the cost of reducing greenhouse gas emissions using physical biofuels in Europe. The calculations adjust Platts biofuels and refined product assessments based on energy densities published in the European Commissions Renewable Energy Directive and then compare the greenhouse gas emissions scores for biofuels and fossil fuels published in RED.

Description Code

European FAME 0 GHG Savings AEURC00

European FAME-10 GHG Savings AEURD00

European HVO GHG Savings AEURE00

European PME GHG Savings AEURH00

European RME GHG Savings AEURI00

European SME GHG Savings AEURL00

European UCOME GHG Savings AEURM00

European SAF GHG Savings AGHGA00

The prices are published in the Platts price database under the descriptions and codes listed above and on the Energy Transition page on Platts Dimensions Pro. Please send any feedback or questions to americas_ags@spglobal.com and pricegroup@spglobal.com. For written comments, please provide a clear indication if the comments are not intended for publication by S&P Global Platts for public viewing. S&P Global Platts will consider all comments received and will make available comments not marked as confidential upon request. READ MORE

Tags

advanced biofuel prices fuel prices GHG (Greenhouse Gas Emissions) carbon credit markets carbon markets ethanol prices gasoline price Renewable Diesel/Green Diesel price Carbon Intensity (CI)/Carbon Footprint LCFS (Low Carbon Fuel Standard) California Renewable Energy Directive (RED/RED II/RED III) waste-to-fuel vegetable oils RME (rape methyl ester) Canola/Rapeseed FAME (Fatty Acid Methyl Ester) ULSD (ultra low sulfur diesel) Aviation Fuel/Sustainable Aviation Fuel (SAF) Asia RINs price D-5 (advanced biofuel) RINs D-6 (renewable fuel) RINs biodiesel biodiesel prices European Union (EU) HVO (Hydrotreated vegetable oil) diesel prices California Air Resources Board (CARB) UCOME (Used Cooking Oil Methyl Ester) Renewable Fuel Standard (RFS and RFS2) Regulations-Federal Regulations-State

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