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Q&A: UK’s biomethane RGGO auction to add transparency

  • Market: Electricity, Natural gas
  • 30/01/25

The UK's first independent biomethane renewable gas guarantees of origin (RGGO) auction is due to take place on 5 February. It will be run by UK auction provider E-power, which currently runs auctions for power purchase agreement (PPAs), renewable obligation certificates (ROCs) and renewable energy guarantees of origin (Regos). Argus spoke to E-power managing director Melanie Reay about the new auction. Edited highlights follow:

UK biomethane producer Future Biogas is providing the certificates for the auction, how did this partnership come about?

Future Biogas contacted us in May following a conference in Glasgow, and was keen to develop a platform to sell its RGGOs. Since then, we have been working on what the platform would look like and testing it so that it will be ready for the first auction next week.

What types of buyers are you expecting to participate in the auctions?

We have invited buyers from our ROCs and Regos auctions, a lot of which have come on board. And we have also been provided with a list of customers that Future Biogas has dealt with in the past. Anyone who wants can take part in the auction, they just need to sign a registration form, which binds them for any bids they make in the auction. We are expecting a lot more interest over the next few days, especially once we have published the list of what lots are in the auction. We have already got some registration forms from international buyers. A lot of Rego buyers are international so they are used to our auction platform and were keen to sign up to this RGGO auction as well.

For those familiar with E-power's Rego, ROC and power auctions, will there be any key differences in how the RGGO auction is run?

No, the auction platform has been designed off the back of the Rego auction, so everything that is in the sale will be in specific lots and you will be able to see what technology the RGGOs come from and when they were produced. This is the first auction so I would not expect it to have lots of certificates. The platform is quite adaptable, so if there is some functionality that we have missed we can adapt it for future auctions.

How do you see this auction affecting the UK RGGO market?

It will make the market a bit more transparent, because if you are logged on you can see what other people are bidding. Future Biogas will set the reserve prices for all the lots, so it will decide where to start the prices in the auction. At the moment, no one is publishing or declaring what they are selling and for what prices.

Do you hope the UK will move closer to using the auction model more often?

There are definitely a lot a benefits to an auction model, rather than [trading happening] behind the scenes. To be transparent about where the certificates are trading helps sellers know what the certificates are worth. Buyers are not paying a fee [to take part in the auction], whereas with the broker model a fee would be paid by the seller and the buyer. With our auction platform, only the seller has fees.

What volumes and types of biomethane will be available in the auction?

We do not know at this point in time, but Future Biogas will be providing a mixture from a few different sites. Prior to the auction, all the lots will be held in the E-power RGGO account so buyers will be able to see an extract from that.

Will you hold more auctions after the first one on 5 February?

Yes. Since we started talking to Future Biogas, we have had enquiries from other sellers, so hopefully we will be able to roll this out to other sellers. We have also had enquiries from trading companies that would like to use the platform to sell as well as buy.


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12/02/25

Mexico factory output dips 1.4pc in December

Mexico factory output dips 1.4pc in December

Mexico City, 12 February (Argus) — Mexico's industrial production fell 1.4pc in December from the previous month with broad weakness across multiple sectors on tariff uncertainty and weak domestic demand. The result marks the largest monthly decline of 2024 and was weaker than the 1pc decline forecast by Mexican bank Banorte. It followed a nearly flat reading in November. Trade uncertainty and low domestic demand weighed on industrial production in December, said Banorte, with industry "sluggishness" likely through mid-2025. Manufacturing, which represents 63pc of Inegi's seasonally adjusted industrial activity indicator (IMAI), decreased by 1.2pc after rising 0.7pc in November. Transportation equipment manufacturing output, which comprises 24pc of the manufacturing component, has fluctuated in recent months, falling 6.4pc in December after a 3.6pc uptick in November and a 4.4pc decline in October. Despite this, Mexico's auto sector achieved record annual light vehicle production and exports in 2024. However, Mexican auto industry associations confirm investment in the sector has begun to slow on uncertainty tied to concerns over potential US tariffs and slow economic growth in 2025. Taking the base case that tariffs do not materialize, Banorte expects manufacturing to rebound in the second half of the year as uncertainty lifts and interest rates fall with rate cuts at the central bank. Mining, which makes up 12pc of the IMAI, was lower by 1pc in December, following a 0.5pc increase in November. The decline was again driven by the oil and gas production, falling by 2.5pc in December to mark a sixth consecutive monthly decline for hydrocarbons output. Construction, representing 19pc of the IMAI, contracted by 2.1pc in December with setbacks in all categories. This matched the November result, with Inegi recording declines in construction in five of the last seven months. From a year prior, industrial production fell by 2.4pc in December , while manufacturing fell by 0.3pc and construction declined by 7.1pc in December. Mining was down by 6.2pc. B y James Young Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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Italy mulling changes to EU gas stock targets: Boschi


12/02/25
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12/02/25

Italy mulling changes to EU gas stock targets: Boschi

London, 12 February (Argus) — Italy is exploring the idea of lower EU gas storage targets, but no decisions have yet been made, the energy chief at Italy's environment and energy security ministry told Argus . A decision on whether to scrap, change or renew the EU rules implemented in 2022 that required a 90pc EU stockfill on 1 November last year and require the same this coming November could be taken in the coming weeks, energy department head Federico Boschi said. "The [existing] stockfill obligations end on 31 December 2025 and as such, there is space for either a halt, a change or an extension," Boschi said, without specifying whether Italy might advocate for a lower target on 1 November 2025 or beyond, or both. Asked whether Italy was seeking a capacity target for gas storage injections, Boschi said the government had also not yet taken a position. "As far as I know, we have no specific target in mind," he said. Filling storage capacity would benefit energy security, but it could also affect prices and favour speculation by increasing demand when it might otherwise be low, Boschi said. The EU stockfill regulations aim to ensure adequate winter gas reserves. But European summer-winter gas price spreads remain inverted out several years, providing no incentive to book storage capacity during that time. PSV summer 2025 prices closed €4.81/MWh above the winter 2025-26 contract on Tuesday. Seasonal contracts on Argus Italian curve do not extend beyond that, but EU benchmark Dutch TTF summer-winter spreads for storage years 2026-27 and 2027-28 closed at +€2.805/MWh and +€0.20/MWh, respectively, on Tuesday. Italy — the EU member with the second-largest storage capacity after Germany — has been looking at a raft of options to curb energy prices for businesses and households, which are among the highest in Europe. The Italian government approved legislation last week to bring forward storage auctions for the 2025-26 year to allow the market to book capacity if price spreads become favourable in February-March. Italian storage operator Stogit plans to offer 2.5bn m³ of capacity starting from 1 April across products lasting 1-5 years on 17 February-19 March. Compatriot storage operator Edison Stoccaggio plans to offer around 900mn m³ of 2025-26 capacity, but has yet to announce auction dates. In any event, the EU's Gas Co-ordination Group is scheduled to meet on Thursday and may discuss gas storage targets. By Stephen Jewkes and Jeff Kuntz Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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US inflation quickens to 3pc in January


12/02/25
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12/02/25

US inflation quickens to 3pc in January

Houston, 12 February (Argus) — US consumer inflation accelerated in January to the fastest pace in half a year, supporting the Federal Reserve's recent decision to pause in its course of rate cuts. The consumer price index (CPI) rose by 3pc in January from a year before, accelerating from 2.9pc in December, the Bureau of Labor Statistics reported today. That marked a fourth month of annual gains from a low of 2.4pc in September. Core inflation, which strips out volatile food and energy, rose by an annual 3.3pc in January from 3.2pc in December. The acceleration in inflation reinforces the Fed's decision last month to hold its target rate steady after three prior rate cuts. The Fed has said it does "not need to be in a hurry" to change its stance while it weighs the impacts of President Donald Trump's tariff policies and other "incoming information". Trump won the November election partly on a pledge to bring down inflation. The energy index rose by 1pc in January following a 0.5pc contraction through December. Gasoline fell by 0.2pc in January after a 3.5pc contraction through December. Piped gas rose by 4.9pc for a second month. Food rose by an annual 2.5pc, matching the prior month's annual gain. Eggs surged by an annual 53pc, as avian flu has slashed supply. Shelter rose by 4.4pc, accounting for 30pc of the overall monthly gain in CPI, slowing from 4.6pc in December. Services less energy services rose by 4.3pc in January following a 4.4pc gain New vehicles fell by 0.3pc after a 0.4pc contraction. Transportation services rose by an annual 8pc in January after a 7.3pc gain in December. Car insurance was up by an annual 11.8pc and airline fares were up by 7.1pc. CPI accelerated to 0.5pc in January from the prior month, the most since August 2023. That followed a monthly gain of 0.4pc in December, 0.3pc in November and three prior months of 0.2pc gains. By Bob Willis Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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India’s LNG demand, imports set to rise by 2030: IEA


12/02/25
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12/02/25

India’s LNG demand, imports set to rise by 2030: IEA

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Brazil’s January inflation lowest since 1994


11/02/25
News
11/02/25

Brazil’s January inflation lowest since 1994

Sao Paulo, 11 February (Argus) — Brazil's monthly inflation stood at 0.16pc in January, the lowest increase for the month since 1994 when the government enacted multiple measures to contain soaring inflation, according to government statistics agency IBGE. The consumer price index (CPI) slowed annually to 4.56pc from 4.83pc in December, heavily influenced by a 14.2pc tumble in power costs in January, compared with a 3.19pc drop in December. Power costs decelerated January's inflation by 0.55 percentage points — the major individual contributor to the annual drop, according to IBGE — thanks to a R1.3bn ($224mn) federal discount in power tariffs that month, CPI's manager Fernando Goncalves said. Food and beverage costs rose by an annual 7.25pc, decelerating from 7.69pc in December. Beef costs increased annually by almost 21.2pc following a 20.8pc gain in the month prior, while soybean oil costs decelerated to 24.55pc over the last 12 months from 29.2pc in December. Motor fuels prices rose by 11.35pc in January. Ethanol was responsible for the group's largest annual increase of 21.59pc, up from 17.58pc in the month prior. Gasoline and diesel prices also registered annual rises of 10.71pc and 2.66pc from 9.71pc and 0.66pc, respectively. Still, diesel prices remained at a 0.97pc monthly increase from December, while ethanol costs contracted by 1.82pc from 1.92pc and gasoline prices increased by 0.61pc from 0.54pc. Fuel prices are likely to keep increasing in February, as states increased the VAT-like ICMS tax on fuels and state-controlled Petrobras increased wholesale diesel prices by 6.3pc , both effective as of 1 February. Transportation costs rose by 1.3pc in January over the year, following a 0.67pc gain in December. Flight tickets were the most responsible for the increase, with a 10.42pc monthly gain from a 22.2pc contraction in December. Brazil's central bank is targeting CPI of 3pc with a margin of 1.5 percentage point above or below. The bank raised its target rate to 13.25pc in January after it failed to maintain Brazil's headline inflation under the ceiling of 4.5pc for 2024. Further increases are expected in the coming months, the bank said. The central bank has recently changed the way it tracks the inflation goal. Instead of tracking inflation on a calendar year basis, it will now monitor the goal on a 12-month basis. In 1994, Brazil enacted its Plano Real, a series of measures to stabilize the economy and detain soaring inflation, which had hit an annual 916pc by the end of that year. One of the measures was to change its currency to the real from the cruzeiro real. By Maria Frazatto Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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