Platts European Biomethane Guarantees of Origin (GOs)

Platts European Biomethane Guarantees of Origin (GOs) and UK Renewable Gas Guarantees of Origin (RGGOs) assessments by S&P Global Commodity Insights are the daily prices for European GOs and UK RGGOs, electronic tracking certificates that represent the environmental attributes of 1 megawatt hour of biomethane entering the natural gas grid. Biomethane is purified biogas, which itself is an alternative to traditional, fossil fuel-derived natural gas, generated through the processing of organic residues from different feedstocks, many of which may otherwise emit methane into the atmosphere.

May 09 2024

Platts I-REC Brazil, Solar, 2024, 2025, 10000 MWh, Indicative offer, R$1.2/MWh sent the week of April 29

Platts I-REC Brazil, Solar, 2023, Trade, R$1.25/MWh completed the week of April 22

Unconfirmed Bid-Offer heard at GBP 8.65-8.75/MWh for 100 GWh of Non-bio GO, CP 23

Unconfirmed Indicative value heard at GBP 13/MWh for Bio GO, CP 22

Unconfirmed Bid heard at GBP 8.4/MWh for Non-bio GO, CP 23

Platts European Biomethane: Offer reported at EUR 50.00/MWh for 2024 waste certified unsubsidised Netherlands GOs

Platts European Biomethane: Offer reported at EUR 45.00/MWh for 2024 waste certified unsubsidised Netherlands GOs

Platts European Biomethane: Offer reported at GBP 7.25/MWh for 2024 crop ISCC certified UK GOs

Platts European Biomethane: Offer reported at EUR 45.00/MWh for 2024 waste certified unsubsidised Netherlands GOs

I-REC India, Wind/Solar, 2024, Bid at USD0.60/MWh

I-REC India, Wind/Solar, 2024, Indicative value, USD1.00/MWh

I-REC India, Large Hydro and Small Hydro spread heard at USD0.10-0.15/MWh

I-REC India, Hydro, 2024, Indicative value, USD0.75-0.80/MWh

I-REC India, Wind/Solar, 2023, Indicative value, USD0.55-0.60/MWh

I-REC India, Hydro, 2023, Indicative value, USD0.35/MWh

I-REC India, Wind/Solar, 2025, Indicative offer at USD1.40/MWh

I-REC India, Wind/Solar, 2024, Indicative offer at USD1.10/MWh

I-REC India, Wind/Solar, 2023, Trade at USD0.42/MWh

I-REC India, Wind/Solar, 2024, Indicative offer at USD1.20/MWh

I-REC Mexico, Wind/Solar, 2024, Indicative offer at USD1.50/MWh

I-REC Mexico, Wind/Solar, 2025, Indicative offer at USD1.55/MWh

I-REC Honduras, Wind/Solar, 2023, Indicative offer at USD0.90/MWh

I-REC Honduras, Wind/Solar, 2024, Indicative offer at USD1.35/MWh

REC New Zealand, Wind, 2024, Indicative offer at USD7.00/MWh

I-REC Mexico, Wind/Solar, 2022, Indicative offer at USD1.25/MWh

I-REC India, Wind/Solar, 2025, Indicative offer at USD1.65/MWh

I-REC Mexico, Wind/Solar, 2023, Indicative offer at USD1.40/MWh

I-REC Honduras, Wind/Solar, 2025, Indicative offer at USD1.35/MWh

I-REC India, Biomass, 2024, Indicative offer at USD1.20/MWh

I-REC Chile, Solar, 2023, Indicative offer at USD0.80/MWh

I-REC Argentina, Biomass, 2022, Indicative offer at USD0.80/MWh

I-REC Panama, Hydro, 2023, Indicative offer at USD1.50/MWh

I-REC Argentina, Wind, 2024, Indicative offer at USD1.25/MWh

I-REC Panama, Hydro, 2024, Indicative offer at USD1.60/MWh

I-REC Brazil, Wind/Solar, 2022, Indicative offer at USD0.19/MWh

I-REC Argentina, Solar, 2023, Indicative offer at USD1.45/MWh

I-REC Peru, Small Hydro, 2023, Indicative offer at USD0.95/MWh

I-REC Argentina, Hydro, 2024, Indicative offer at USD1.05/MWh

I-REC Peru, Hydro, 2024, Indicative offer at USD1.00/MWh

I-REC Brazil, Hydro, 2024, Indicative offer at USD0.30/MWh

I-REC Panama, Solar, 2022, Indicative offer at USD1.20/MWh

I-REC Argentina, Solar, 2024 Indicative offer at USD1.45/MWh

I-REC Peru, Wind/Solar, 2024, Indicative offer at USD1.40/MWh

I-REC Argentina, Wind, 2023, Indicative offer at USD0.75/MWh

I-REC Peru, Wind/Solar, 2023, Indicative offer at USD1.40/MWh

I-REC Peru, Wind/Solar, 2022, Indicative offer at USD1.10/MWh

I-REC Chile, Wind, 2022, Indicative offer at USD0.45/MWh

I-REC Argentina, Hydro, 2023, Indicative offer at USD0.80/MWh

I-REC Costa Rica, Hydro, 2023, Indicative offer at USD1.00/MWh

I-REC Argentina, Hydro, 2022, Indicative offer at USD0.80/MWh

• European biomethane continues to see thin liquidity
• Buyers, sellers refuse to give ground on 2024 vintages
• Sustained interest in term deals as spot thins

Spot European biomethane Guarantee of Origin prices ended the week of May 2 slightly lower, as the standoff between buyers and sellers continued.

The Platts-assessed price for 2024 spot Denmark waste GOs ended the week at Eur21.70/MWh, with Netherlands waste GOs at Eur23.625/MWh, while Germany GOs closed at Eur25.55/MWh, all slightly weaker. UK biomethane waste GOs ended the week at GBP11.825/MWh, near stable over the period. This was compared to the week before, which saw Denmark at Eur21.85/MWh and the Netherlands assessed at Eur23.775/MWh with Germany GOs starting at Eur25.70/MWh. UK waste RGGOs started the same period at GBP11.975/MWh.

UK crop RGGOs ended the week assessed at GBP5.425/MWh, while Denmark and Netherlands manure were assessed at Eur67.95/MWh.

Market participants said poor liquidity was a symptom of a larger standoff between buyers and sellers within European biomethane, as parties held their ground, with few parties seeking to cross the lines for transactions.

Sources said that with newer vintages being issued over the course of early 2024, many sellers were in a position to wait for a recovery before committing to moving volumes at current prices. As a result, buyers were unlikely to pressure sellers to meet at lower prices.

“Most people have sold their 2023 [volumes] by now and are not really in a rush to move their 2024 volumes right now,” said one trader in Europe.

This was despite market participants reporting that there were plenty of available volumes for current vintages across Europe, particularly with new production coming online this year, adding to the supply of 2024 certificates.

“Just because there’s a lot of it around doesn’t mean it’s going to be cheap,” said a trader in the UK, who added that sellers still had the option to wait.

Sources said that incentivizing demand was key to driving demand in in this environment, but it would take some pressure on sellers to sink any lower, especially since producers had seen record prices over 2022-2023.

“The simple answer to a lot of this is that you will have to lower the offer to incentivize demand. But producers are pushing back now against the low expectations of some of the buyers,” said the Europe-based trader.

While activity in the spot market remained thin, market participants said that discussions around term deals continued to be heard, with parties seeking to lock in supply for 2025 and beyond. Sources said this could be driven by buyers and sellers mitigating forward risk given the volatility in pricing over the past nine months.

As a result, some market sources said these discussions could be taking liquidity out of the spot market as demand was being increasingly fulfilled by term supply.

In associated markets, European Union Allowances recovered over the week ending May 2, with the nearest December contract assessed at Eur72.78/mt after starting the period at Eur68.39/mt.

Platts is part of S&P Global Commodity Insights.

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