Platts launches production cost-based renewable methanol prices

Platts, part of S&P Global Commodity Insights, has launched daily production cost-based renewable methanol prices for North America, Europe and Asia, in response to market feedback and maritime industry's need for price valuations for sustainable methanol, effective June 19, 2023.

A consultation note to the industry seeking feedback was published Feb. 8, 2023 here and a decision note on May 31, 2023 here.

The new assessments are on a FOB Rotterdam, FOB USG and FOB Shanghai basis and appear in the following pages and publications: PCA 242, 346, 347, 348, 447, 653, 541, 872, 1160 and Platts Market Center, Solvents Wire, Asian Petrochemicalscan, Europe & Americas Petrochemicalscan and Platts Dimension Pro.

The symbols for the assessments are as follows:

Product Specification: Product must conform to the International Methanol Producers and Consumers Association (IMPCA) reference specification with a minimum purity of 99.85%, maximum water content of 0.1% by weight and maximum ethanol content of 50 mg/kg.

Standard Cargo Size: 500-750 mt for FOB USG; 300 to 1,000 mt for FOB Rotterdam; and 500-1,500 mt for FOB Shanghai

Timing: 5-30 days forward

The assessments represent the cost of production, transportation and storage for renewable methanol, underpinned by the Platts daily electricity (IERHM01, IERHP01, AADMN00) and natural gas assessments (IGBAP00, GTFWD00, LJNCG00). The new assessments are aligned with the assumptions of the Process Economics Program (PEP) formula which provides a calculation of production costs for renewable methanol, produced via electrolysis and direct air-captured carbon dioxide. The PEP report is available for S&P Global Connect subscribers following this link: https://connect.ihsmarkit.com/.

As spot activity emerges in these nascent markets, Platts intends to launch spot assessments that reflect that activity and invites feedback on the nature and timing of such assessments.

The variable and fixed inputs including capital and operating assumptions such as energy conversion efficiency and plant capacity will be reviewed on an annual basis, or more frequently if required, to ensure they are representative of current market dynamics.

Please send any further feedback 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.