Argus RED biomethane
Overview
Argus RED biomethane Germany VTP (THE) is a robust, independent price assessment for biomethane that qualifies for sale into the German transport sector and has a carbon intensity of 10gr CO2e/MJ. Argus also provides a price for biomethane with higher GHG savings and a carbon intensity of minus 100gr CO2e/MJ that is called premium RED biomethane Germany VTP (THE).
Advantages of the Argus biomethane price assessments
Argus is the first to provide a market-assessed price for unsubsidised biomethane for the transport sector in Europe.
As experts in the biofuels markets, Argus is well positioned to provide timely transparency of the growing market and to help participants better understand the value of the fuel in the road and logistics market.
The biomethane assessment complements the well-developed Argus price assessments for renewable gas guarantees of origin (RGGOs). RGGOs label the source of network-injected biomethane and enable uncommitted biomethane supply to change hands between an increasing number of national registries.
How Argus biomethane price assessments are used
Argus RED biomethane and premium biomethane Germany VTP (THE) price assessments provide an independent reference for those operating in the German transport sector, including majors and oil companies, as well as German biomethane producers.- Biomethane producers and sellers can use Argus’ prices for evaluating portfolios, planning and benchmarking supply agreements.
- Biomethane traders and market analysts can manage risk, develop trading strategies and benchmark trades using Argus’ biomethane assessments.
- Independent references can help renewable investor and financial institution portfolio development and management. The independent prices can support informed decision-making during the energy transition.
- ESG-minded industrial and commercial businesses can track market developments and look to negotiate supply agreements with a view to current biomethane prices.
How to access Argus biomethane price assessments
The German biomethane VTP (THE) price is assessed weekly and published in Argus Biofuels, a market-leading service providing key benchmark prices for biofuels globally, alongside market commentary and expert analysis. The prices are also published in our German service, Argus O.M.R.
What is biomethane?
Biomethane is a near-pure source of methane produced by upgrading biogas. Biogas is most commonly produced through anaerobic digestion of biomass such as manure, municipal waste and sewage sludge. The amount of greenhouse gas (GHG) savings achieved depends on the feedstock used during biomethane production. Most prominently, manure-based biomethane is attributed with a carbon intensity of about minus 100gr CO2e/MJ because high amounts of methane emissions are being captured instead of released naturally into the atmosphere.
Biomethane is a readily available gaseous feedstock for the energy transition that is chemically similar to natural gas and can be used in power generation, as a road fuel and in heating and industrial applications.
The use of compressed biomethane (bioCNG) as a fuel is increasingly seen as an option for reducing road fuel emissions in European countries such as Germany, Italy, the Netherlands and the UK. This is because biomethane can be produced from several so-called advanced or Annex IX Part A feedstocks that enable it to be counted towards respective advanced sub-targets in place for the EU transport sector and counted twice towards most national transport targets. For biomethane to be counted towards the respective domestic blending mandates, its production must be unsubsidised and RED-certified.
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