Argus launches daily German HVO prices
Published by Poppy Clements,
Assistant Editor
Hydrocarbon Engineering,
HVO, also known as renewable diesel, is chemically identical to conventional road diesel and can be used as a 'drop-in' fuel to replace fossil diesel, with no blending limits. Along with sustainable aviation fuel, it is considered a 'second generation biofuel'.
The three new Argus prices for Germany are assessed by collecting bids, offers and physical transactions in the pricing regions of north, west and southwest Germany. The prices are for HVO truck sales including energy tax and the value of greenhouse gas (GHG) emissions savings. Calculated differentials to HVO Class II fob ARA barge prices are also available.
The German market for HVO is growing rapidly and further acceleration is expected in 2024, when the government is scheduled to permit unrestricted HVO sales at filling stations.
As requirements on companies to reduce emissions are mounting, HVO is growing in popularity, with large consuming companies switching away from diesel. This is supported by the rising CO2 tax and GHG savings mandates, which are set to increase the price of fossil diesel and lower the price of HVO. The GHG savings mandate in Germany will rise to 25% in 2030 from 9.35% in 2024.
Argus Media, Chairman and Chief Executive, Adrian Binks, said: "As companies seek to reduce their GHG emissions we expect HVO capacity and consumption to increase sharply over the next few years. Our new German HVO prices have been launched in response to feedback from market participants across the industry and bring much needed transparency to this rapidly growing market. To operate efficiently, participants need clear and accurate pricing, based on real transactions and other indications of buying and selling interest."
Argus' new assessments for HVO in Germany join a suite of hydroprocessed biofuels prices including four classes of Argus wholesale HVO fob ARA prices, in addition to prices for Asian HVO and US renewable diesel. Argus has been adopted as the settlement basis for several biofuels financial derivative contracts including FAME 0, RME and UCOME biodiesel benchmarks and the recently launched futures contract for HVO, based on used cooking oil as feedstock.
Read the article online at: https://www.hydrocarbonengineering.com/clean-fuels/19012024/argus-launches-daily-german-hvo-prices/
You might also like
Hydrocarbon Engineering Podcast
Mike Logue, Owens Corning Global Business Director – Mechanical Insulation, delves into factors that can support the performance, safety and longevity of insulating systems installed in hydrocarbon processing environments, including cryogenic facilities.
Woodside signs gas supply agreement for Louisiana LNG
Woodside has signed an agreement with bp for the integrated energy major to supply natural gas to the Louisiana LNG project.
