Platts, part of S&P Global Commodity Insights, has launched a first-of-type daily sustainable methanol bunker price assessments basis the US Gulf Coast, effective June 13, in response to the maritime industry’s ever-evolving need for greater pricing transparency.
The new assessments follow a consultation with the marketplace and are aimed at helping shipowners, charterers, shipping brokers compare the cost of a voyage on low carbon methanol versus other alternative marine fuels such as ammonia and hydrogen.

The new Platts carbon-accounted methanol marine fuel (MMF) price assessments will reflect values on a delivered-Houston basis. In addition, Platts will launch spot carbon-accounted methanol price assessments reflecting material loading on a free-on-board (FOB) US Gulf basis.

Global marine fuels are in the spotlight, given the International Maritime Organization and FuelEU Maritime decarbonization targets, which have spawned a market quest for more clarity around the cost of low-carbon bunker fuels.

Maria Tsay, director, global chemicals price reporting, S&P Global Commodity Insights, said, “The marketplace and industry regularly comes to Platts, part of part of S&P Global Commodity Insights, for its independent solutions to pricing needs. With our century-plus experience developing price-assessment methodologies and being the leading independent provider of information, data, analysis, benchmark prices and workflow solutions for the commodities, energy and energy transition markets, S&P Global Commodity Insights is a trusted source of price assessments and we’re pleased to be bringing transparency to these new bunker markets.”

According to S&P Global Commodity Insights, the 2023 IMO GHG Strategy envisages a reduction in carbon intensity of international shipping (to reduce CO2 emissions per transport work), as an average across international shipping, by at least 40% by 2030 and net-zero by 2050. Particular attention is expected to focus on key checkpoints for international shipping: net-zero GHG emissions for 2030 (by at least 20%, striving for 30%) and 2040 (by at least 70%, striving for 80%).

The Platts price assessments reflect 1) a 100% fully carbon-accounted Houston methanol delivered bunker value (referred to as Platts 100 MMF) and also; 2) a 20:80 blend, referred to as Platts 20 MMF. This 20:80 blend comprises 20% of the fully carbon-accounted FOB USG methanol price and 80% of Platts’ pre-existing conventional methanol price, factoring in barging and storage costs.

Having a blend price option gives the industry some leeway on the chance that production of renewable methanol – either biomethanol or eMethanol– is not up to the desired commercial scale between now and 2030. A blend option still suits an industry that seeks to meet early IMO decarbonization targets.

The new assessments are:

• Platts 100 MMF: This assessment will represent fully carbon-accounted methanol delivered as a bunkering fuel in the port of Houston. The assessment, expressed in $/mt, will factor in the cost of offsetting methanol’s carbon footprint, based on the Platts valuation of the methanol carbon intensity.

• Platts 20 MMF: This assessment will represent the value of the methanol marine fuel blend, containing 20% sustainable methanol and 80% of conventional methanol. This assessment will reflect a blend with the maximum carbon intensity of 88 gCO2e/MJ and will likely see a widespread adoption in the next five years.

• In addition to the new methanol marine fuel assessments Platts will launch spot carbon-accounted methanol price assessments reflecting material loading on an FOB US Gulf basis within the current and next months.

All other parameters of the new assessments, including chemical specifications, cargo sizes, loading and delivery dates mirror those of the pre-existing Platts delivered-Houston methanol bunker price assessments and Platts FOB USG spot methanol assessments.

Source: S&P Global Commodity Insights