/ Price Assessments

Renewable Diesel

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What are RD-A assessments?
The RD-A assessments reflect renewable diesel produced from Renewable Energy Directive Annex IX-A waste and residue feedstocks, as listed in the Netherlands Energy for Transport register. The RD prices are published as an outright price in US dollars per metric ton and US dollars per cubic meter, as well as premiums to the Platts ULSD FOB ARA barge assessment.
What are RD-B Assessments?
The RD-B assessments reflect renewable diesel produced from feedstocks in Annex IX-B of the European Renewable Energy Directive. The RD prices are published as an outright price in US dollars per metric ton and US dollars per cubic meter, as well as premiums to the Platts ULSD FOB ARA barge assessment.
Renewable Diesel Commentary

  • Renewable diesel margins weaken
  • Demand for feedstocks grows


European renewable diesel prices slid in the week to May 22 as margins weakened amid a lull in demand within the biofuel complex.

Platts assessed the FOB ARA RD-A premium over ULSD down $77/mt at $755/mt, while RD-B premiums similarly dropped $92/mt to $768/mt as the spread between POME and UCO derived HVO narrowed.

“I think HVO margins are not that great these days, better than UCOME, but not what the HVO producers are used to,” a trader said.

With growing demand for feedstocks in the biodiesel, renewable diesel and sustainable aviation fuel markets, the availability of feedstocks was a concern, market participants said. Such rising competition has shifted underlying feedstock prices and put margins under pressure.

“The markets feel fragmented. The biodiesel market feels unhospitable, and this isn't going to get any better,” a broker said, adding, “the first child, biodiesel, had the biggest share and all the attention, then renewable diesel came in and got more attention and margins, now we have SAF which has insane margins.”

“Biodiesel margins are becoming smaller and smaller. SAF producers desperately need feedstocks and will outbid anybody in the market, so where are people going to get all these feedstocks from and what is going to happen to these biodiesel producers?,” the broker said.

Since the start of the calendar year, FOB ARA used cooking oil has jumped $170/mt to $1,100/mt May 22, according to Platts data.

“HVO plants are coming into production in the coming months. It feels like they are the players driving up the price of UCO, especially FOB ARA prices,” the same broker said.

Poland’s largest refiner Orlen said May 23 its throughput ticked higher in the first quarter due to reduced maintenance, but refining sales volumes fell 1.4% year on year.

Orlen said its expects a 6.6% year-on-year growth in planned capital expenditure this year to Zloty 38.6 billion ($9.8 billion). The largest chunk, Zloty 27.9 billion, was earmarked for new investments, including the construction of visbreaking and hydrotreated vegetable oils units in Plock, a hydrocracking unit at Orlen Lietuva, a hydrocracking oil block and sea terminal in Gdansk and a bioethanol unit at Orlen Poludnie.

Platts is part of S&P Global Commodity Insights.

Renewable Diesel Heards
May 21 2024

~~ Platts R.Diesel: RD: Amended - Spot RD-B/RD-A, Indicative spread heard at $5-10/cu m premium 15:18:10.592 GMT


~~ Platts R.Diesel: RD: Spot RD-B/RD-A, Indicative spread heard at $5-10/mt premium 8:50:38.983 GMT


~~ Platts R.Diesel: RD-B: Spot, FOB ARA, 1kt, min 85% GHG savings, premium to ICE Gasoil, Indicative bid at $550/cu m 8:50:18.797 GMT


~~ Platts R.Diesel: RD-B: Spot, FOB ARA, 1kt, min 85% GHG savings, premium to ICE Gasoil, Indicative offer at $600/cu m 8:50:07.112 GMT


May 16 2024

~~Platts RD: RD-A: Spot, FOB ARA, 1kt, min 85% GHG savings, premium to ULSD, $832/mt corroborated 14:40:06.071 GMT


May 09 2024

~~Platts RD: Spread between RD-A and RD-B heard close to parity 14:17:30.301 GMT


~~Platts RD: RD-B: Spot, FOB ARA, 1kt, min 85% GHG savings, premium to ICE Gasoil, offer at $635/cu m 14:16:58.053 GMT


May 07 2024

~~Platts R.Diesel: RD-A: Spot, FOB ARA, 2.5kt, min 85% GHG savings, -15 CFPP, premium to ICE Gasoil, offer at $650/cbm 13:09:04.947 GMT


May 01 2024

~~Platts RD: RD-A: Spot, FOB ARA, 1kt, min 85% GHG savings, premium to ICE Gasoil, traded at $650/cbm 14:39:25.158 GMT


April 23 2024

~~Platts R.Diesel: RD-B: Spot, FOB ARA, 1kt, min 85% GHG savings, premium to ULSD, Ind. Value $870/mt 14:54:59.972 GMT


~~Platts R.Diesel: RD-A: Spot, FOB ARA, 1kt, min 85% GHG savings, premium to ULSD, Ind. Value $805/mt 14:54:55.640 GMT


April 19 2024

~~ Platts RD: Correction: UCOME: June paper, 10 lots seen traded at $455/mt over ICE gasoil, via ICE blocks 10:58:06.818 GMT


~~ Platts RD: RD-B: Spot, FOB ARA, 1kt, min 85% GHG savings, premium to ICE Gasoil, Ind. Value $680-700/cbm 10:36:24.171 GMT


~~ Platts RD: RD-A: Spot, FOB ARA, 1kt, min 85% GHG savings, premium to ICE Gasoil, Ind. Value $630/cbm 10:36:17.394 GMT

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