Market Report | January 2023

REGO Market Showing More Liquidity.

  • Prices for CP21 REGOs (April 2022 to March 2023 generation) continue to be strong, particularly for ‘deep green’ technologies.
  • More sellers in the market may put a cap on pricing for the current compliance period.
  • Prices for CP22 (April 2023 to March 2024) production remain at a healthy premium to CP21 in anticipation of the ban on GoO imports.
  • REGOs from generation that does not need to be passed to the PPA holder can be sold to capture this value.
  • There is still a market for CP20 REGOs (October 2021 to March 2022 production) – opportunities remain to monetise REGOs that would otherwise expire worthless.

“The REGO market is beginning to show a bit more liquidity as the end of the compliance period approaches.”

Mike Ridler, Head of Green Markets at C-Zero
Mike Ridler
Find out about the team

“The RGGO market continues to show healthy gains into the New Year.”

Mike Ridler

RGGO Market Remains Buoyant

  • Prices continue to rise with a strong demand for Crop Certificates.
  • Given the high waste prices, there has been some switching to Crop from buyers looking for lower-cost certificates.
  • 100% waste certificate pricing remains particularly strong, with most going to European buyers.
  • ISCC and DENA certification commands an even greater premium.
  • The tumbling wholesale gas prices have not dampened prices, and demand remains high from large corporations with commitments to lower carbon.
  • Corporates continue to buy certificates independently from their energy supply.
  • Relatively weak Sterling continues to make UK certificates attractive to European buyers.

“RTFCs are trading at smaller discounts than last month.”

Bruce Brown

Bruce Brown

Director at C-Zero
Find out about the team

RTFC market remains less volatile than in 2022

  • Prices continue to feel pressure from falling biodiesel prices, with the latest pricing in the low £0.30s.
  • Waste/Non-Crop certs demand a premium of c.1p on CropMarket bids are currently focused on the 2022 vintage, with few bids for 2023 certificates.
  • RTFC Gasoil and UCOME prices are still highly correlated.
  • RTFC for biomethane at current prices worth c.8p/KWh.
  • The capability to blend for 2022 obligated parties is now removed. The only option certificates, which can be purchased up to September 2023.
  • Opportunities to hedge future volumes against market downturn.

And finally….

We’re delighted to be exhibiting at The World Biogas Expo 2023 (29- 30 March 2023). You will be able to visit us at stand A509.

The World Biogas Expo will be back in 2023. It’s the world’s leading trade expo solely dedicated to the anaerobic digestion and biogas industry, providing the latest market and technology news, sector by sector, and a platform for industry professionals from the UK and overseas to network, share experiences and do business.

Come and join us on 29-30 March 2023, Hall 8, NEC Birmingham. We look forward to seeing you! #MakingBiogasHappen #WorldBiogasExpo2023

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