Market Report | January 2024
” RGGO prices are still in a slow decline as European demand dries up. “
Clare Haigh, Head of Environmental Markets at C-Zero
- A lack of buyer demand continues to pressure biomethane, with persistently low buying interest weakening prices.
- Waste certificate prices continue to decline to the £14/£16 mark.
- There is currently little interest in crop certificates, although very low volumes have sold at £11/MWh.
- There is a wide bid/offer spread, with buyers holding off as prices decrease and producers unwilling to sell at that level. It is unclear at what level buyers will be incentivised to purchase.
- The sentiment from European traders is that we are yet to see the floor price.
- Some generators are looking at multi-year offtake contracts at a slight premium to current market levels. Given recent market volatility, this could serve as a hedge for producers looking for price certainty for some of their forward volumes.
- As a result of the EU’s implementation of 2022/966 and ISCC methodology changes, producers are required to calculate the greenhouse gas emissions based on their combined feedstocks rather than a split. This is resulting in a temporary pause in new contracts.