Argus RED marine biodiesel indexes

The Argus RED Marine Biodiesel indexes

Argus RED Marine Biodiesel indexes are a suite of prices that capture the value of delivered-on-board bunker prices for Advanced Fame 0 and VLSFO blends delivered to northwest Europe with daily HBE-Gs or Dutch bioticket deductions, storage, throughput and barge costs included.

The indexes are for a range of blends, including B10, B20, B30, B50 and B100.

What is the advantage of the Argus RED Marine Biodiesel indexes?

The shipping industry is under pressure to decarbonise, driven by EU and IMO regulation and changing consumer demand. Biofuels including biodiesel provide an immediate carbon reduction before alternative “future” fuels such as hydrogen and ammonia are proven or become more widely available.

These prices provide an independent, daily price reference for companies to make better decisions on the most economical way to decarbonise their bunker fuel consumption.

How are the Argus RED Marine Biodiesel indexes used?

Contracts: Shipping companies can use these prices in term contracts, spot contracts and in contract negotiations with bunker suppliers. Also, internally within organisations it can be used for transfer pricing.

Risk management: Companies buying FAME and VLSFO for blending can use this independent index for mark-to-market valuations.

Optimisation: Refiners, traders and bunker suppliers selling marine biodiesel blends can identify shortages/oversupply to manage production and maximise profits.

Analysis: Marine biodiesel indexes can be used to monitor the evolving premium to conventional bunkers and as an input to price forecasts.