Platts seeks feedback on green methanol production cost valuations

Platts, part of S&P Global Commodity Insights, seeks feedback on a proposed green methanol price valuations produced using a calculated cost model in certain hubs, including Rotterdam and US Gulf Coast.

The proposed daily publications would reflect a FOB Rotterdam and FOB USG basis, representing the cost of producing green methanol to the plant gate; transportation and storage costs will be added from surveying the market.

The cost portion of the assessments will be underpinned by the Process Economics Program report, a production cost plus model which can be found in S&P Global Connect in the following link: https://connect.ihsmarkit.com/

The assessments will not be based on observed or reported market transactions, given limited spot market activity in a nascent market.

Platts would review the variable and fixed inputs including capital and operating assumptions such as energy conversion efficiency and plant capacity factor on an annual basis, or more frequently if required, to ensure they are representative of current market dynamics.

Platts is seeking feedback whether it would be more relevant to base its calculations on a 100,000 mt/year plant or a 50,000 mt/year green methanol plant and other relevant variables.

Should market data, such as bids, offers or transactions be available and meet Platts editorial guidelines, Platts will consider launching new values to reflect this traded market, after sufficient consultation with the market.

Please send any questions or comments to petchems@spglobal.com and pricegroup@spglobal.com. 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.