HOUSTON, May 16, 2023
/PRNewswire/ -- Platts, part of S&P Global Commodity Insights,
the leading independent provider of information, analysis, data and
benchmark prices for commodities, energy and energy transition
markets, has announced the launch of new first-of-type daily Platts
North America Renewable Natural Gas (RNG) price assessments, with
the aim of bringing price transparency to this emerging market.
Renewable natural gas is methane-rich biogas emitted from sources
such as animal manure, landfills and sewage that has been captured
and processed to produce pipeline-quality natural gas.
Production of US renewable natural gas has grown steadily since
its inclusion in the federal Renewable Fuel Standard and
interest in RNG will continue to expand as companies seek to reduce
their carbon footprint. According to S&P Global Commodity
Insights' Planning Scenario forecasts, renewable natural gas supply
will grow threefold to 2030, and as much as fivefold, according to
its more ambitious Fast Transition outlook to 2050.
California is the first state
in the US to adopt a renewable gas standard and is a key consumer
of renewable natural gas. The California transportation fuels market
historically has been considered the market of choice for RNG
sellers across North America, with
the stacked combination of the state's Low Carbon Fuel Standard and
federal Renewable Fuel Standard credits providing a "price to beat"
for other buyers.
Platts has launched two RNG price assessments: One that
reflects California transport
fuels market incentives where the transacted gas is consumed within
California, and another that
reflects RNG supplied to consumers outside of California and thus does not include those
additional state-level incentives. The new Platts price assessments
reflect the premium that pipeline quality RNG receives over
pipeline-quality fossil natural gas, delivered on a spot basis in
North America, with a pathway that
has a carbon intensity (CI) of 45 *:
- Platts North America RNG (California) -- assessment reflects
the price premium for renewable natural gas sold into and purchased
in California
- Platts North America RNG Premium (Excl. California) – assessment reflects the
price premium for renewable natural gas sold and purchased outside
of California
Alan Hayes, Head of Energy
Transition Pricing, S&P Commodity Insights, said:
"We believe our new Platts RNG assessments bring much needed price
transparency to this nascent and growing market, and we see the
demand for renewable natural gas pricing information continuing to
grow, as RNG becomes ever more important as a component of the
energy transition."
Platts will also publish the North
America renewable natural gas carbon intensity value per
point, which represents the change in value of the North America
RNG Premium based on a one-point decrease in the carbon intensity
of the production pathway.
Mark Callahan, Director
Americas Natural Gas Pricing, S&P Commodity Insights,
said: "Renewable natural gas is one of the solutions market
participants have to reduce methane emissions and carbon intensity.
Having this new price information will allow companies to better
value their RNG portfolios on a daily basis regardless of
production pathway or location."
The assessments may be found in S&P Global Commodity
Insights products and services, including: Platts Gas Daily,
Americas Natural Gas Alert pages, Platts Dimensions
Pro, and in the Platts price database.
*The CI of 45 was chosen to reflect a typical CI for
landfill-derived RNG, the most commonly available type of RNG
currently on the market
Media Contacts:
Americas: Kathleen
Tanzy + 1
917-331-4607, kathleen.tanzy@spglobal.com
EMEA: Paul Sandell + 44 (0)7816 180039,
paul.sandell@spglobal.com
Asia and India: Melissa
Tan + 65-6597-6241, melissa.tan@spglobal.com
About S&P Global Commodity Insights
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decisions with conviction and create long-term, sustainable
value.
We're a trusted connector that brings together thought leaders,
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solutions that lead to progress. Vital to navigating Energy
Transition, S&P Global Commodity Insights' coverage includes
oil and gas, power, chemicals, metals, agriculture and
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S&P Global Commodity Insights is a division of S&P
Global (NYSE: SPGI). S&P Global is the world's foremost
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https://www.spglobal.com/commodityinsights.
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SOURCE S&P Global Commodity Insights