Argus is undergoing plans to amend its FOB US Gulf coast low-carbon methanol methodology, re-naming it RED biomethanol fob USGC, to be more aligned with the CIF UK biomethanol assessment and EU feedstock directives.
The shift will allow for the alignment between the producing region, the US Gulf coast, and the UK and EU consuming regions.
Certification of US-produced material must be accompanied with a Renewable Energy Directive (RED) compliant certification issued by a European Commission-approved auditing body.
Greenhouse gas savings must show a minimum 65pc emission reduction. based on a fossil fuel comparator of 94g CO2 equivalent/MJ, with a carbon intensity score of no more than 32.9g CO2e/MJ.
As product carbon intensity becomes critical to the market, a clear and defining methodology to match with policy regulations is even more important, as it leaves room for emerging markets of methanol products with varying carbon intensities.
To date, the market remains in its early stages, with very few sellers moving product from the US Gulf coast to the European market. The assessment may be calculated as a netback from the RED biomethanol CIF UK weekly average assessment.
The methodology change will go into effect on November 29
Author: Steven McGinnRelated products
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