Monthly Report | February 2025

REGO 

  • CP23 WSH is currently trading between 50-80p with Bio trading between 20-35p as we continue to see a decline in REGO prices.
  • Demand looks to be picking up as we approach the end of the Compliance Period from both energy suppliers and corporate customers. However, with a glut of certificates still available in the market, this additional demand is failing to lift prices, the outlook remains long.
  • Looking forward we are seeing prices around the following levels for future CPs:
  • CP24 WSH – £1.25 & Bio £1.15
  • CP25 WSH – £1.70 & Bio £1.30
  • CP26 WSH – £1.85 & Bio £1.63

 

“The REGO Market Remains Long”

Clare Haigh - Head of Environmental Markets at C-Zero
Clare Haigh

“A quieter month due to e-world and holidays but RGGO demand remains stable”

Mike Ridler Profile picture
Mike Ridler - CEO – Chief Executive Officer

RGGO

  • The annual E-World energy show drew the usual European Bio-Methane market participants to Essen for 3 days.
  • The sentiment in the Biomethane market remained buoyant among attendees, but the lack of clarity on the implementation of the Union Database and the GHG Protocol on using RGGOs to offset Scope 1 emissions continues to temper buyers’ confidence.
  • The GHG protocol indicated that they may not issue definitive guidance on the role of renewable gases in Scope 1 emissions inventories for fuel and feedstock applications until 2028! ABDA and 143 other organisations around the world are calling for a quicker decision, as it is crucial for the continued development on the Biomethane industry. You can add your support here.
  • AstraZeneca, in partnership with Future Biogas, inaugurated the UK’s 1st unsubsidised biomethane facility in Lincolnshire. This plant supplies 100 GWh of renewable energy annually to AstraZeneca’s UK operations, aiming for 100% renewable energy usage by the end of 2025.
  • 2023 Crop and Waste demand dwindled over the course of Feb and prices fell to £6/MWh
  • 2024 Crop continued to trade in the £6s/MWh with limited demand.
  • ISCC accredited Waste and Crop of all vintages continued to command the most interest from UK and continental buyers with 2024 ISCC Waste/Resi trading between £11.50 and £12/MWh and ISCC Crop trading in the low £8s/MWh.
  • The market for 2024 Waste (Non-ISCC) has been non-existent with little volume traded. Prices are under pressure and producers may well offer volumes below £9/MWh to tempt buyers into the market.

“Carbon follows European gas down”

Susanne McKay

Green Markets Manager

Carbon

  • US and Russian negotiations on peace in Ukraine removed some of the risk premium on European Gas – and the downward tracking gas market was reflected in a falling Carbon market.
  • EU discussions around relaxing gas storage requirements, coupled with higher LNG imports slowing the rate of inventory withdrawals, tempered concerns about depleting gas reserves. This greater confidence in supply, along with warmer than average weather in Northwestern Europe, also contributed to cheaper gas and lower Carbon prices.
  • EUAs ended the month around the €70/mt mark and UKAs dropped to around £40/mt.
  • Carbon continues to feature in European legislative proposals. On the 26th February, the European Commission presented the Clean Industrial Deal, including plans for an ‘Industrial Decarbonisation Bank’ part-funded by revenues from the EU ETS.
  • The EC also outlined proposals to simplify CBAM (Cross Border Adjustment Mechanism) to reduce any administrative burden and potentially extend its scope to indirect emissions and other EU ETS sectors.

“GO market relatively stable”

IMG_5090
CCO – Chief Commercial Officer

EuGo

  • Spot prices remained relatively stable, with sellers holding firm on price expectations.
  • Nordic Hydro continues to be a key market driver. Hydro stocks have seen a decrease, and although this seasonal shift is expected, the surplus against the five-year average has been contracting slightly.
  • Romania is still on track to join the AIB by 1st June 2026. AIB membership coupled with the establishment of their local GO market will pave the way for their proper integration to the European GO market and potential position as a net GO exporter.
  • Improvements to the AIB Hub will go live on 14th April, further simplifying certificate transfers between national registries.

And finally...

RECS
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