Platts launches renewable diesel prices for the Americas

In Texas, S&P Global Platts announced the launch of renewable diesel values for the Americas. These daily assessments bring transparency to a growing market as the transport and refining industry embraces the energy transition towards low-carbon intensive fuel. 

These new prices follow Platts’ launch of Europe’s price references for HVO on August 17, 2020, and sustainable aviation fuel (SAF) prices for the Americas and Europe launched in the third quarter of 2020. 

The cost-based prices will be published from December 1, 2020, and will reflect the cost of renewable diesel produced from tallow via hydro-processing. The daily prices will be expressed in US dollars per gallon and reflect the production costs of renewable diesel for blending into diesel. 

Physical market trading for renewable diesel has not yet reached sufficient volumes to support spot price assessments and, therefore, the cost-based methodology will be calculated by S&P Global Platts Analytics based on existing Platts assessments and other fixed costs. The renewable diesel inputs are costs of tallow and hydrogen, added to fixed renewable diesel fuel refinery costs, then deducting the by-products of gasoline and propane.