ship.energy

First risk management contract for recycled feedstocks

London-based PRIMA says it is providing the first instrument for European biodiesel and HVO producers, oil refiners and feedstock suppliers to manage their forward pricing risk using a low carbon feedstock.

The company has launched a CME-listed futures contract which settles against the daily PRIMA European T1 Used Cooking Oil price assessment.

PRIMA’s daily assessment tracks liquidity in European and imported waste oils used in biofuels manufacture. Waste oils are only considered towards the assessment if they are accompanied by the stringent sustainability documentation required by European regulators, says the company.

‘The new contract is a world first in transport fuels: it allows the existing global transport fuel supply chain to manage risk while eliminating emissions. PRIMA is proud to be producing the data tools which are speeding the energy transition,’ said  PRIMA Managing Director, Matthew Stone.

Lesley Bankes-Hughes

Lesley Bankes-Hughes