Market Report | July 2024
- We are seeing a slow start to this compliance period with poor market liquidity.
- Prices for CP23 are currently tracking at a similar rate to where we saw CP22 in Q2/Q3 last year.
- It remains to be seen whether we will see the price volatility that we saw in CP22. Last year there was concern amongst some traders that REGO volumes would be short with the change in legislation around GOs no longer being accepted in the UK market. This turned out not to be the case, so we may not hit the same peaks in price we saw in October 2023.
- CP22 is currently achieving around £1.50/REGO. Although the Fuel Mix Disclosure deadline has passed for this CP there is still some corporate interest for generators with certificates still in their account.
- CP23 is currently trading between £7-8/REGO.
- CP24 is currently trading between £6-6.50/REGO.
“It remains to be seen whether we will see the price volatility that we saw in CP22”
Clare Haigh - Head of Environmental Markets at C-Zero
- Crop / Product seems to be flavour of the month with buyers who do not require sustainability criteria associated with Waste/Residue. Consequently, these buyers have been able to lock in volumes at lower prices.
- The supply of 2024 RGGO volumes has increased this month as more RHI claims are approved, coupled with producers realising prices are likely to stay subdued for the rest of the year.
- Prices for Crop RGGOs have remained stable in the mid £6s/MWh as increased supply catches up with the pent-up demand that we have seen in previous months.
- There has been less demand for Waste/Residue but for the trades fulfilled, prices have remained in the low/mid £10s/MWh.
“2024 Crop / Product seems to be the flavour of the month”
Mike Ridler - CEO at C-Zero
