December 14, 2021 8:30 am - 3:30 pm CST Online Pricing: Complimentary Where energy connects The South American Virtual Forum offers attendees an in-depth look at the South American commodities markets, with a particular emphasis on Argentina and Colombia. We’ll examine oil and gas, LNG, biofuels, petrochemicals , and the impact of the energy transition on these industries. Join us from the comfort of your desk, to explore the issues impacting the markets today, and projections for the future, in topical sessions featuring Platts’ methodology, assessments, and pricing. What's included You can expect live presentations, real-time interaction, and the opportunity to engage in questions and answers with the speakers throughout, right from your desk. Key topics we'll cover -Latin American economic overview-South American upstream-Refined products markets-Shipping and freight markets-Petrochemicals demand and outlook-Biofuels and biodiesel in regional markets-Natural gas and LNG outlook-South American metals outlook  REGISTER NOW MORE INFO

2022 marks the 10 year anniversary of our Global Metals Awards. Much has changed since our debut event in 2013, but the core of these prestigious awards remains the same: we celebrate the achievements of the Metals sector as judged by an impartial panel of metals and mining experts. Together, our nominees, finalists, winners and judges represent the pinnacle of our industry. Register Now

China poised to release detailed carbon market regulations EU’s inframarginal revenue cap foreshadows market debate California makes headway on EVs, New York follows by example China is due to release a comprehensive set of carbon market regulations in the “not-too-distant future” that should help resolve implementation issues dogging liquidity in the country’s compliance market, a senior ministry official has told S&P Global Commodity Insights. Meanwhile executives at the Asia Pacific Petroleum Conference organized by S&P Global in Singapore said global carbon markets can still look forward to progress at COP27 despite recent challenges, in the form of tougher goals and more trustworthy standards. Singapore’s Ministry of Trade & Industry said it had been selected to anchor a World Bank-initiated platform connecting information from carbon registries worldwide to enhance transparency and avoid double counting of credits. Europe’s new Eur180/MWh market revenue cap on “inframarginal” generators – including wind, solar, hydro and other renewable sources – may be a snap measure in response to spiraling gas prices, but the cap foreshadows a much deeper potential intervention in market design being discussed. At stake is the EU’s single energy-only market structure based on one generation stack, with the marginal unit setting the price for all. Refined over decades, the market has been branded as unfit for purpose by politicians under pressure to clamp down on energy costs. Getting the balance right in the thick of an energy crisis while accelerating renewables investment is just one of the many daunting challenges facing EU energy ministers. California has launched a $348 million program aimed at expanding electric vehicle charging points along its interstates and highways. The funding, made available to the state through the Infrastructure Investment and Jobs Act of 2021, is designed to help the state achieve its goal of phasing out conventional vehicle sales by 2035. Meanwhile, New York state has announced it will begin following California’s example by also adopting a mandate to end gas-powered car sales by 2035. The state has already committed $1 billion that will be spent over the next five years to help New Yorkers move on from internal combustion engines. – Henry Edwardes-Evans Asia SPGlobal.com APPEC: China oil refiners diversify anticipating tougher emissions regulations APPEC: INTERVIEW - Sustainable aviation fuel use rising but policy needed to accelerate uptake-Neste Premium content (available exclusively on Platts Dimensions Pro ) China to issue new regulations to strengthen carbon market structure, trade: official APPEC: Carbon industry hopeful for constructive outcomes at COP27 despite turmoil APPEC: Singapore to become the connection point for global carbon registries, says official EMEA SPGlobal.com Egypt to focus on adaptation, technology at COP27 in challenging geopolitical context Metals supercycle 'intact' on energy transition demand, says ERG CEO EU energy ministers agree power price mitigation package Premium content (available exclusively on Platts Dimensions Pro ) German lignite miner Leag plans 7 GW solar by 2030 on former mines Norway announces new hydro, wind resource rent taxes and high price contributions North America SPGlobal.com US green hydrogen costs to reach sub-zero under IRA; longer-term price impacts remain uncertain California ISO asks to clarify interconnection process to allow time before financial deadlines Premium content (available exclusively on Platts Dimensions Pro ) Ballard Power to provide PEM fuel cells for US's first hydrogen-powered train in San Bernardino New York adopts California mandate to end sales of new gas cars by 2035 Federal funding to help expand California EV charging stations along the interstates, highways Chart of the week: The launch of a public highway EV recharging program in California is crucial to delivery of the state’s ICE phase out plan Quote of the week: "You can take electrolysis projects completely off grid, co-locate them with some sort of hybrid solar or wind plant and pair them directly in order to achieve these low costs. That's a trend that we're going to be keeping an eye on over the next several years" - Hy24 Investment Director Alejandro Perellon Price of the week: $146/mtCO2e Platts-assessed tech-based carbon removal credit price on Sept. 30, a week before the UK’s consultation on utility-scale bioenergy carbon capture and storage closes Report of the week: Energy in the new era Published by S&P Global Commodity Insights to coincide with APPEC 2022 , this report explores the interplay between energy transition and energy security, ranging over topics from oil and refining to carbon markets, sustainable shipping and hydrogen

Commodities show little sign of shaking the bearish momentum amid a slew of economic warnings across the globe. Whether the market wants to push oil much below $90/b amid potential OPEC output cuts , looming Russian sanctions, and the end of SPR releases is the big question. Demand destruction may be met by supply reduction. Prices are often a matter of perspective. On one level, the key S&P GSCI commodity index has fallen by more than 20% since peaking in June, but, from another angle, it is still three times higher than in April 2020 when it went on its lengthy bull run. Dated Brent is now close to pre-war price levels at just below $90/b. After spiking up to close to $140/b on fears of lost Russian barrels, the market did an about-face as inflation and higher interest rates in the West combined with persistent lockdowns in China. “Oil fundamentals are expected to ease further in Q4 and into 2023 driving prices lower but risks remain with little spare capacity for crude and some key products,” S&P Global Commodity Insights said in a recent research note. S&P Global expects Dated Brent to average in $90s/b in the fourth quarter and in a similar range into next year, with the structure remaining much flatter as most of the price decline occurs at the front of the forward curve. China oil demand is falling in 2022 for the first time in decades, and demand growth during the second half of the year is weaker than expected in the US, Western Europe and China. Special report: Energy in the new era The macroeconomic picture is full of foreboding signs for global demand. The US Federal Reserve raised interest rates by 75 basis points and pumped up the hawkish volume as it looks to combat core inflation, stripping out volatile food and energy costs, which hit 6.3% year-on-year in August. Saying that, overall oil demand is still growing, even among the gloomiest of forecasters. And all the evidence is pointing to a recovery in market balances. Standard Chartered Bank said in a recent research note the market has swung into a large and unheralded surplus. “Forecasts from consultants and US investment banks of Q3 oil prices of $150/b and higher were mainly based on the assumption of a large deficit; we think the market has not yet fully priced in the extent to which that assumption proved wrong,” the analysts at Standard Chartered wrote. Commercial global oil stocks have started to build in recent weeks, and many analysts see that trend accelerating in the fourth quarter and through the first part of 2023, even as the US brings the release of strategic petroleum reserves to a close. Supply destruction But the threat of further supply curbs is brutally real. EU sanctions on Russia kick in in early December, and the question looms large as to whether India and China can maintain the same level of interest in Russian crude. Moscow could also retaliate over the G7’s planned price caps on its oil by shutting in swathes of production, wrong-footing the US-led initiative which is intended to keep the oil flowing but hit Putin’s ability to fund the Ukraine war . “Russian supply loss expectations are still assumed to peak at 1.5 million b/d in Q1 2023,” according to S&P Global research. “Exports remain resilient, but limited buyers and tankers willing to re-route over 3 million b/d is expected to take a toll.” And OPEC+, producing close to maximum, has already signaled to the market the balance of risks is shifting by deciding to cut output by a symbolic 100,000 b/d at its September meeting. The threat of more sizable output reductions amid historically low spare capacity is certainly a key consideration for the market. “The justification for $90/b is that the world economy can handle such a price and the only way we can see additional investment to meet future demand … is to keep oil prices at $90/b or above,” said independent oil consultant Anas Al-Hajji. “A severe recession means that a $90/b floor cannot be defended, also it is not in the interests of OPEC+ to defend $90/b in case of recession … but I believe the hard floor is in the $60s,” he added. The US release of emergency stocks also adds a level of complication. Reports the US may start repurchasing 180 million barrels of emergency sales if crude falls below $80/b were quickly walked back. According to S&P Global there could be a potential rethink of SPR policy that could plausibly annul the final 25 million barrel batch of planned emergency sales through Oct. 31, and delay 26 million barrels of fiscal 2023 Congressional sales beyond an assumed delivery timeline of November-December 2022. Al-Hajji adds “there is no way the Biden administration is going to refill the SPR at these prices.” MUFG bank analysts added to the argument that commodities react later than financial markets to the economic data. “While elevated commodity prices are driving demand destruction, particularly in Europe and emerging markets, it is critical to emphasize that demand is easing, not contracting,” the bank said. “Our bullish commodities thesis is neither about inflation risks nor the Fed’s hawkishness. It is about scarcity led by severe underinvestment in commodity capacity that has left supply unable to meet rising demand induced by government policies around redistribution and ESG considerations.” Ole Hansen, head of commodity research at Saxo Bank, said there could be “pockets of strength” across commodities in energy, metals and agriculture, highlighting “sanctions, upstream cost inflation, adverse weather and a low investment appetite.” While even recent history teaches us there is neither a true ceiling or floor to oil and commodity prices more widely, only the bravest may wish to choose a clear path ahead.

The interplay between energy transition and energy security has come into focus, with governments, national oil companies, IOCs and financial institutions required to play a pivotal role to collectively strike a balance between these objectives amid turbulent markets, industry experts said at the Asia Pacific Petroleum Conference 2022 organized by S&P Global Commodity Insights. "Right now, the world is in a perfect storm of crises," VP Chief Sustainability Officer Petronas Charlotte Wolff-Bye said Sept. 26, noting that setbacks included nature-based crises, social inequality, supply chain issues, climate change disruptions and those related to prices. These adversities were testing both countries and companies, necessitating swift action, she said. Some players and companies are being more proactive than others in addressing those issues, she said, noting Malaysia has made a very strong commitment to decarbonization with the recent launch of The National Energy Policy 2022–2040 aimed at ushering the country toward energy transition. This comes on top of the Twelfth Malaysia Plan 2021-2025 that targets 31% of Malaysia's total installed energy capacity being renewable by 2025 and the Malaysia Renewable Energy Roadmap target of achieving 40% renewable energy by 2035. Petronas was also committed to pushing Malaysia forward in its decarbonization journey, Wolff-Bye said. "Carbon capture and storage is absolutely essential for us... going forward, we would like to develop services around it," she said. Petronas's wholly owned entity GENTARI was launched in September with the aim of becoming a one-stop integrated clean energy solutions provider, beginning with a suite of renewable energy, hydrogen and green mobility solutions for commercial, industrial and retail customers. GENTARI in a statement Sept. 15 said it had inked an agreement with Petronas Refinery and Petrochemical Corporation to introduce a zero-emissions vehicle fleet supported by EV charging points and explore the potential for hydrogen fuel cell vehicles at the Pengerang Integrated Complex, among the biggest integrated petrochemical facilities in the region. Indonesia's state energy firm Pertamina is also supporting a government sustainability agenda by restructuring its businesses recently to not only create a leaner structure but also focus on sustainable energy including carbon capture solutions and technology, renewables and electric vehicles, Fadli Rahman, director of strategic planning and business development Pertamina Power Indonesia, said during the same panel discussion. In addition to tackling climate change, it is also imperative to ensure energy affordability and an equitable distribution while also preparing people to embrace change, Rahman said. "We [Pertamina] have RON 95, RON 98 and recently RON 92 [in gasoline grades]. Previously, we used RON 88," Rahman said, noting that "because of the environmental aspects, the government is imposing upon us to not use RON 88 anymore." "We need to make sure there is a just transition before we can ensure there are higher RONs. We are waiting for the right time to make sure that the citizens of Indonesia can accept it," he said. S&P Global's executive director upstream solutions Nick Sharma noted that renewable power generation and increasing its presence further down the value chain were among the primary focus areas at present. European GIOCs spent 5%-15% of their organic spend toward low carbon in 2021, which will likely rise to 20%-40% by 2026, he added. Financing energy transition To build a competitive position in energy transition, corporate venture capital investments and partnerships are seen as a viable pathway, with companies also tapping new financing approaches including sustainability-linked debt or green bonds, impact funds, equity deals, SPACs and IPOs, Sharma said. A lot of financial institutions are still very much committed to net zero, but they also realize the trajectory is going to matter, Galid Lahdahda, MD head of downstream and chemicals at Standard Chartered Bank, said in a separate panel discussion. "There is a big role for the government [to play in ET] ... we [industry] should also adjust because if we do not adjust, we are looking at a $100/b oil and $50/MMBtu LNG and then we are in trouble as a global community," he said. Robert Johnson, head of oil & gas and petrochemicals at MUFG, said what the regional governments can look at is reducing the risk associated with financing and providing assurances for the cost of money coming in. This could be in the form of regulatory or legal measures or in subsidies to make the project more profitable, he said. There has been tremendous growth in the green bonds and green loans market, Lahdahda said. "What's next is transition financing and I'm sure there might be some on the plate coming along," he added, noting this was a good thing because it helps set the right incentives for borrowers. In addition to green bonds and sustainability-linked loans, there will be more products in future, Johnson said. "In our bank, it takes an entire department just to manage this transition... it's an exciting place to be in," Johnson said. "But it has to be done responsibly," he added.

Soybean meal spot prices in China hit its highest level at Yuan 5,500/mt on average Sept. 26, up by 8% week on week, amid lower availability in the domestic market, sources said. As CFR China soybean prices surged to a record high in March 2022, the Chinese crushers lowered the purchase volumes of imported soybeans for June shipment and onwards to minimize losses from deteriorating negative crush margins. Soybean meal prices were last higher at Yuan 5,150/mt on March 22. According to industry sources, the demand for June to August 2022 shipments were only at 20 million mt, down by about 10% compared to same period last year. Subsequently, the arrival volume of imported soybeans during the third quarter of 2022 has dropped. The total import volume of soybeans in July and August 2022 was at 15.04 million mt, down by 5.6% compared to same period last year. As a result, many crushing plants have started experiencing shortage in soybeans this month, leading to lower crushing volume and declining soybean meal inventories. Meanwhile, as the long holiday for National Day Celebration in China approaches, demands for hog prices continue to support hog raising margin which was at Yuan 800/mt last week. Downstream feed sectors are willing to purchase more soybean meal for feed usage and stockpiling during festival seasons. As a result, the growing demand has pushed prices higher during the recent weeks. "It was heard that the spot soybean meal price has surged to Yuan 6,100/mt in Xinjiang Province, and spot prices remain at high levels in north-east regions of China," a Chinese crusher said. The replacement crush margin was around Yuan 450/mt as of Sept. 23, up 50% compared to two weeks ago, market sources said. "The replacement crush margin would remain positive as soybean meal prices will be supported until November when the arrival volume of imported soybeans is expected to increase as crushers have purchased higher volumes of soybeans for September shipment and onwards," a Chinese trader said. However, buyers are concerned about the depreciation of Chinese yuan against the US dollar. "The depreciation of Chinese yuan has eroded potential gains on the crush margin, discouraging crushers to purchase more for spot shipment," another Chinese crusher said.

Development of the Greater Sunrise gas and condensate fields, first discovered in the Timor Sea in 1974, has been stalled for decades. With a maritime border dispute between the Southeast Asian island country of Timor-Leste and Australia solved, the project continues to be held up over a disagreement on whether the gas should be piped to Timor-Leste or Australia for processing and eventual export. The head of Timor-Leste’s national oil company recently came to Washington to garner both technical expertise and strategic support from US policymakers. While in town, Timor Gap President and CEO Antonio de Sousa joined the podcast to share his hardline position that gas from Greater Sunrise must be pumped to Timor-Leste; his optimism that a path forward is within reach, as a deadline has been set to finalize a legal framework and production sharing contract for the offshore project; and his outlook for future growth in the LNG market. Stick around after the interview for Starr Spencer with the Market Minute, a look at near-term oil market drivers. Related content: Shell sells 26.56% stake in Greater Sunrise to East Timor for $300m South Korean LNG importers eye infrastructure expansion for supply security Global scramble for LNG tankers likely to boost gas prices further More listening options: No content (including ratings, credit-related analyses and data, valuations, model, software or other application or output therefrom) or any part thereof (Content) may be modified, reverse engineered, reproduced or distributed in any form by any means, or stored in a database or retrieval system, without the prior written permission of Standard & Poor's Financial Services LLC or its affiliates (collectively, S&P).

Manchin’s energy infrastructure bill unveiled, with consequences for hydrogen Europe’s carmakers call for ICE vehicle ban rethink China likely to exceed its 2025 target of 33% renewables share Democratic Senator Joe Manchin of West Virginia revealed his US energy infrastructure permitting reform bill last week – the Energy Independence and Security Act of 2022. Following a prior agreement the senator struck with Democratic leaders that allowed for the passage of the Inflation Reduction Act, the EISA will set a two-year time limit for environmental reviews of major energy projects, including both clean energy and fossil fuel developments. The law also would provide clarity for future hydrogen pipelines, which do not fit under the current regulatory regime. If enacted, the Natural Gas Act would be amended to include pipelines carrying either pure hydrogen or a hydrogen-gas blend, effectively placing hydrogen in the same regulatory framework as natural gas. European fuelmakers have urged the European Union to revisit proposals to ban the sale of new internal combustion engine cars and vans by 2035 in the light of rising energy and battery metal costs. The EU's goal of full vehicle fleet electrification creates "unnecessary risks; industrial, economic, social and in terms of delayed GHG reductions," fuel industry groups said in a joint letter. Meanwhile European hydrogen project developers are putting off investment decisions in light of the European Parliament's Sept. 14 vote to remove strict renewables criteria for green hydrogen projects. While potentially positive for projects, added uncertainty will not help the EU meet tough 2030 targets, speakers said at S&P Global Commodity Insights’ Amsterdam hydrogen conference. China’s renewable energy consumption hit 29.4% of total electricity consumption, or 2,444.6 terawatt-hours, in 2021, according to a recent report by energy regulator National Energy Administration, or NEA. Industry experts say China is likely to exceed its 2025 target of 33% renewables share as several initiatives to boost inter-provincial transmission of wind and solar power are in the works. This will make China one of the countries with the highest penetration of renewables, which is considerable given the size of its economy. Meanwhile, Japan has started to put together a framework for voluntary carbon trading, even though there is a general resistance to a nationwide can-and-trade program such as the one operational in Europe. In a key pricing related development, China launched the first set of domestically assessed hydrogen price indexes Sept. 22, jointly developed by Shanghai Futures Exchange (SFE), Shanghai Environment and Energy Exchange (SEEE), and Yangtze Delta Hydrogen Research Institute. – Rocco Canonica Americas SPGlobal.com Transmission reform could lower US emissions faster than climate package: think tank US MIDTERMS 2022: Power sector focusing on federal agencies following major laws Premium content (available exclusively on Platts Dimensions Pro ) US senator's bill places hydrogen pipeline authority in FERC's hands, opts to use gas framework DOE launches application process for hydrogen hub funding Manchin releases long-awaited text of bill to speed US energy project permitting EMEA SPGlobal.com European fuel makers urge EU to rethink plans for ICE car ban due to energy crisis UK's emergency budget sets ambitious targets for energy project construction EC approves up to $5.15 bil state aid for second cluster of hydrogen value chain projects Premium content (available exclusively on Platts Dimensions Pro ) Renewable power asset owners 'taking wait-and-see approach' to PPAs: Pexapark European hydrogen projects pause investment decisions as EU scrambles to match US APAC SPGlobal.com ANALYSIS: China could exceed renewables generation target of 33% by 2025 ANALYSIS: LNG still a viable solution for maritime decarbonization despite hurdles Premium content (available exclusively on Platts Dimensions Pro ) Japan launches demonstrative carbon credit market South Korea includes nuclear energy in green taxonomy to curb use of coal China launches first domestic hydrogen price indices in Shanghai Special Content – Podcast Listen : Climate wars and common ground: Australia's decarbonization and hydrogen journey Chart of the week: Quote of the week: "We think transmission reform would actually have more total-emissions impact than either Build Back Better or IRA would have in aggregate." --Devin Hartman, director of energy and environmental policy at the R Street Institute. Price of the week: Eur23.30/kg Soaring European power prices ensure Platts’ Dutch hydrogen assessment (PEM electrolysis, including capex) is more than four times as expensive as the equivalent assessment for the US Northeast region

The UAE's Abu Dhabi National Oil Co. will supply German companies with LNG and diesel cargoes in 2022 and 2023 as Europe's biggest oil consumer seeks to diversify energy sources amid reduced supply of Russian gas and upcoming European Union sanctions on crude and oil product imports from Moscow. As part of a new Energy Security and Industry Accelerator agreement signed between the UAE and Germany, ADNOC will supply RWE with an LNG cargo in late 2022 to be used in the country's floating LNG import terminal in Brunsbuttel, state-run WAM news agency reported Sept. 25. ADNOC has also earmarked several other LNG cargoes for German customers for delivery in 2023, the agency said, without disclosing further details. The agreements were signed during a state visit by German Chancellor Olaf Scholz to the UAE, the second stop on a three-country trip that started in Saudi Arabia and will take him next to Qatar, where other energy deals are expected to be signed. ADNOC, which completed its first ever direct diesel delivery to Germany in September, has agreed to the terms with Wilhelm Hoyer GmbH & Co. on the supply of up to 250,000 mt of diesel per month in 2023, WAM said. German LNG demand As Russian gas deliveries dwindle from Nord stream, German utilities are working to diversify gas import portfolios and build up the limited import capacity for LNG. Uniper, RWE and EnBW on Aug. 16 signed a memorandum of understanding for gas supplies into the Wilhelmshaven and Brunsbuttel floating storage and regasification units, which are set to start operations this winter with a capacity of 12.5 Bcm/year. Germany is developing a total of five state-backed FSRU projects, but the focus is initially on supplying LNG into the Wilhelmshaven and Brunsbuttel sites. The FSRUs in Brunsbuttel and Wilhelmshaven are to be operated by RWE and Uniper. The reduction in Russian flows to Germany via Nord Stream since mid-June and then the complete halt in deliveries at the end of August have helped keep European gas prices at sustained highs. Platts, part of S&P Global Commodity Insights, assessed the Dutch TTF month-ahead price at an all-time high of Eur319.98/MWh on Aug. 26. It was last assessed on Sept. 23 Eur179.20/MWh, almost three times higher than at the end of 2021. Oil products supply Before Russia's invasion of Ukraine in February, Germany was the world's second-biggest buyer of Russian crude after China, importing 687,000 b/d of crude and 149,000 b/d of oil products from Russia in November 2021, according to the International Energy Agency. Most of the crude was delivered via the northern branch of the Druzhba pipeline system from Russia, with smaller amounts arriving via tanker to Rotterdam and its North Sea ports of Wilhelmshaven and Brunsbuttel. Germany had already seen most of its refiners and oil importers switch away from Russian supplies since March. By mid-April, the government said the country had slashed its dependence on Russian crude to 12% of its imports from 35% before the invasion of Ukraine. The UAE energy producer has also signed agreements with German customers, including power plant operator Steag and copper producer Aurubis for the supply of low-carbon ammonia. The first cargo of low-carbon ammonia from ADNOC arrived in Germany Sept. 15 on its way to Aurubis, which will use the low-carbon ammonia as a feedstock in its wire rod plant. The demonstration cargo, produced by Fertiglobe, an ADNOC unit that produces fertilizers, is the first of several test cargoes to be sent from the UAE to Germany as the UAE energy producer expands its strategic energy partnership. Low-carbon ammonia delivery ADNOC plans to work with several German companies on hydrogen projects and signed deals with companies including Uniper, Aurubis and RWE as it looks to expand into Europe after having establishing export markets in Asia. ADNOC signed an agreement with German companies Hydrogenious and Uniper on March 21 on imports to Wilhelmshaven, covering 7,000-10,000 mt/year of green hydrogen shipments from 2025, as part of a demonstration project. ADNOC aims to supply up to 25% of Germany's imported clean hydrogen and derivatives such as ammonia. The UAE is also targeting a 25% share of the global green and blue hydrogen market by 2030. As part of agreements signed on Sept. 25, UAE's renewable energy firm Masdar will also explore opportunities to develop as much as 10 GW in offshore wind in the North Sea and Baltic Sea in Germany by 2030, WAM said.

Few would blame the metals sector if it set aside decarbonization efforts while navigating the impact of geopolitical uncertainty, supply chain disruptions and inflationary concerns that have shaken global commodities markets this year. But the opposite has been true, particularly in Europe. Carbon-accounted metals products continue to be sought after by eco-conscious end-users and consumers alike, and often are commanding price premiums over comparable standard material. The price differentiation that has emerged has been the driving force behind low-carbon metals price assessments launched by Platts, part of S&P Global Commodity Insights, since early last year. On Sept. 20, Platts launched the latest offering in this space – new daily European Low-Carbon Aluminum Billet assessments , delivered duty paid Italy and Germany. In tandem with the launch, Platts increased the frequency to daily of its existing weekly assessments for both standard aluminum billet DDP Italy and DDP Germany, also effective Sept. 20. The LCAB assessments apply to 6060/6063 billets produced with a maximum Scope 1 and 2 certified emissions level of 4 mt of CO2 per mt of aluminum at the smelter only, in dollars per metric ton, minimum order sizes of 50 mt. The assessments do not encompass Scope 3 emissions of other production-related activities, such as mining and raw material transportation. Platts will only consider aluminum billets which have had their smelter Scope 1 and 2 emissions certified by an internationally accepted, independent organization for the LCAB assessments. Market participants also will be expected to supply proof of such certification upon request. 'More legislation, more restrictions' The LCAB launch comes as European low-carbon aluminum billets have already begun to command a premium to standard billets. Whether they’re produced by smelters utilizing low-emissions energy sources or secondary material made predominantly from scrap, market sources reported low-carbon billets were fetching premiums mostly in a range of $20-$40/mt over the month leading up to the launch, according to Platts data. No premium was captured on the first day the LCAB assessments went live, however, with standard and low-carbon billets both assessed at $1,010/mt. One North American aluminum consumer told S&P Global recently that the European market has been driving demand for low-carbon material – both as end-users seek such suppliers and their customers increasingly require certified low-carbon products. The consumer added that in the past, customers – particularly in the automotive sector – often preferred primary billets and rejected secondary billets made with scrap. Now, with decarbonization a priority, most push for material made with a minimum of 80% recycled material, as well as certifications they can show to customers to prove it. Billets made from scrap consume less energy in production than those made through primary aluminum smelting. A European producer source pointed to the region’s more stringent regulatory environment and the likelihood of continued legislation driving demand for low-carbon material into the future. “The more legislation we have, the more restrictions there will be on high carbon, which will concentrate more demand into low carbon,” the producer said. Decarbonization’s global reach While the European market so far has emerged as the trend setter when it comes to low-carbon metals and emerging price premiums, demand for such material is not limited to that region. Global producers including Alcoa, Rusal, Rio Tinto, Century and Hydro all have released low-carbon product lines in recent years, with guarantees of less than 4 mt of CO2 per mt of aluminum produced, based on smelter emissions. The trend gained momentum last year, as the International Aluminum Institute released a report outlining what it characterized as “three credible and realistic approaches to emissions reductions for the aluminum industry.” The report, titled " Aluminium Sector Greenhouse Gas Pathways to 2050 ," pointed to electricity decarbonization, direct emissions reduction and recycling and resource efficiency as potential solutions. Platts LCAB assessments launch followed extensive engagement with market participants throughout the aluminum value chain. The new assessments complement Platts existing carbon-related price offerings, including its Low-Carbon Aluminum Price (LCAP) for high-grade European P1020 aluminum and its Zero-Carbon Aluminum Price (ZCAP) leveraging Platts CORSIA-eligible carbon credit price assessments (CEC) to calculate the cost of offsetting the carbon emissions of the LCAP assessment to zero. Platts also publishes eight global low-carbon metals spreads and ratios that incorporate some of the most liquid markets and widely used finished product and feedstock assessments. The spreads and ratios can help compare lower- and higher-carbon metals inputs and inform feedstock choices, such as usage of various scrap grades and other metallics. Just as the metals sector has remained focused on decarbonization despite the challenges of current market conditions, Platts will continue to offer carbon-related metals assessments, insights and tools aimed at bringing transparency, quantifying costs and managing risks and opportunities associated with the growing focus on carbon-reduction strategies and increasing global regulation.

Argentina is forecast to receive rain in key wheat-growing regions over Sept. 25-Oct. 1, but severe dryness and frost have already hammered the prospects of the current crop, potentially reducing availability to regular buyers in Africa and Asia. No heavy rainfall was forecast in the current Sept. 18-24 week, although showers of varying intensity were forecast in some regions, Argentina's meteorological department said in an update. Rains in the current week will improve moisture slightly for late wheat growth in Argentina, but much more was needed to end dryness, weather agency Maxar said. The wheat crop in Argentina has already been severely impacted by dry weather in recent months and without more rain, the crop will be one of the worst in recent years. This could not come at more challenging time for global grain markets, which are already grappling with squeezed wheat supply due to the Russia-Ukraine war. The US ** 55% of soybean acreage was currently rated in good to excellent condition, three points below the same time a year earlier, according to the US Department of Agriculture. ** 52% of the nation's corn acreage was rated in good to excellent condition, 7 points below the same time last year. ** The weather forecast for the next 16-30 days remains slightly warmer than average across the central plains areas for corn and soybeans, while showers in the south-central Midwest are likely to slow down corn and soybean harvesting, according to Maxar. ** Platts-assessed FOB PNW corn rose 5.5% month on month to $350.30/mt Sept. 21, a 7-week high. ** 94% of the nation's spring wheat had been harvested as of Sept. 18, 6 points below the previous year, according to the USDA. Australia ** Most of the wheat-growing regions of Western Australia and New South Wales have a lower than usual chance of showers over the next two weeks to Oct. 7, according to the Australian Bureau of Meteorology. ** The dry weather was expected to be good for the standing wheat crop, as it will help in drying the crop after the regions received heavy showers over the past few weeks. ** The likely lower-than-average chance of showers in Western Australia was increasing hopes of slightly higher-than-expected output of milling wheat output. ** Platts-assessed Australian Premium White or APW wheat rose $5/mt month on month to $370/mt Sept. 21. The EU ** Most parts of France, especially the northern and western regions, were forecast to receive heavy showers over the next two weeks to Oct. 3, Mateo France said. ** The intensity of the rainfall may increase further over Sept. 25-Oct. 1, Mateo France added. ** The expected rainfall may provide some respite to the wheat and corn crops in France, a source at a key producer said. ** In Germany, light showers are forecast over western and southern parts until Sept. 27, according to the German weather service Deutscher Wetterdienst. ** Limited rainfall may improve wheat crop conditions in some areas, industry sources said. ** The EU's Monitoring Agricultural Resources agency has forecast wheat yields in marketing year 2022-23 (July-June) falling 1.4% year on year to 5.54 mt/hectare. For the EU's corn crop, yields for MY 2022-23 were seen 7.8% lower on year at 7.25 mt/hectare. ** Platts-assessed EU wheat with 11% protein content CPT Rouen rose 7.8% month on month to $345.25/mt Sept. 21. Brazil, Argentina ** Brazil's first corn crop planting was expected to experience favorable weather conditions Sept. 20-26 as the forecast points to more rain in the southern regions where the sowing is concentrated. ** Widespread rains in the week to Sept. 23 will improve moisture supplies, which will favor corn germination but slow down wheat drying, Maxar said. ** Planting of the 2022-23 first corn crop had reached 22.1% of the forecast area in Center-South Brazil as of Sept. 15, private consultancy AgRural said in a note. ** Argentina's early corn crop planting has been delayed by drought, with barely 1% of the forecast area sown as of Sept. 15, compared with 25% a year ago, BCR said in a report. ** Planting of the early corn crop in Argentina typically begins in September, but the lack of sufficient rainfall has forced farmers to delay planting. ** Platts-assessed Brazil FOB corn rose 1% month on month to $293.49/mt Sept. 22, while Argentina FOB corn rose 1.4% over the same period to $278.94/mt. This article is part of a global weather watch series from S&P Global Commodity Insights, which is published fortnightly.

The path to recovery for Asian oil demand has not been free of challenges. With a worse than expected consumption outlook in China due to pandemic-induced lockdowns, markets are looking for answers on whether gains in Asia, excluding China, will be strong enough to offset the bearish consumption outlook in the region's biggest oil consumer. In a wide-ranging discussion ahead of APPEC 2022 , S&P Global Commodity Insights' experts-- Dave Ernsberger , Head of Market Reporting and Trading Solutions, Rosemary Griffin , Russia Managing Editor and Zhuwei Wang , Asian Oil Analytics Manager-- discuss with Sambit Mohanty , Asia Energy Editor, the possibility of Asian oil demand returning to pre-pandemic levels in 2022, the outlook for Russian oil flows to the region, and the energy security versus energy sustainability debate. Subscribe to Platts Dimensions Pro for access to assessments and premium content covering Platts Gasoline Unl 92 FOB Spore Cargo ( PGAEY00 ), Platts Gasoil FOB Spore Cargo ( POABC00 ) and much more. More listening options: No content (including ratings, credit-related analyses and data, valuations, model, software or other application or output therefrom) or any part thereof (Content) may be modified, reverse engineered, reproduced or distributed in any form by any means, or stored in a database or retrieval system, without the prior written permission of Standard & Poor's Financial Services LLC or its affiliates (collectively, S&P).

Australia has accelerated its climate ambitions with a new commitment to cut emissions by 43% by 2030, which translates into having about 82% renewable power in its energy mix. Alongside that, the 2019 National Hydrogen Strategy aims to position the country as a top global exporter of the energy carrier. Demonstrations, pilot projects and hubs are being developed around the country, such as the first international pilot to export hydrogen. In this episode of the Platts Future Energy podcast, Ruchira Singh discusses the contours of the Australian government’s climate policy measures, and the considerations around hydrogen for the nation’s decarbonization journey with Mendo Kundevski, Ankit Sachan and Anton Ferkov. Price assessments featured in this episode: Hydrogen Western Australia SMR with CCS (inc. CAPEX) A$/kg (HYAAZ00) Hydrogen Western Australia Alkaline Electrolysis $/kg (HYAES00) Hydrogen Queensland PEM Electrolysis (inc. CAPEX) $/kg (HYABR00) Hydrogen South Australia PEM Electrolysis A$/kg (HYABW00) Japan Hydrogen Alkaline Electrolysis (incl CAPEX) $/Kg (IGYFU00) More listening options: No content (including ratings, credit-related analyses and data, valuations, model, software or other application or output therefrom) or any part thereof (Content) may be modified, reverse engineered, reproduced or distributed in any form by any means, or stored in a database or retrieval system, without the prior written permission of Standard & Poor's Financial Services LLC or its affiliates (collectively, S&P).

Texas is one of the largest emitting states in the US and stands to become ground zero of the carbon management industry. But unlike other states, Texas law provides no clarity on ownership rights of pore space -- the empty underground cavities where companies can pump and permanently store captured CO2. While surface rights and mineral rights are crystal clear, Texas hasn’t defined who owns those underground pore spaces. Carbon Neutral Coalition Executive Director John Colyandro joined S&P Global reporter Brandon Mulder on the podcast to share his insights on the issues surrounding pore space ownership, how it could be holding back the industry, and ways it could be resolved in the upcoming legislative session. Stick around after the interview for Jeff Mower with the Market Minute, a look at near-term oil market drivers. Related content: Texas seeks regulatory authority from EPA over CO2 injection wells 45Q, financial uncertainties hinder capital flow for CCS deployment: panel S&P Global Market Intelligence: Natural gas plants with carbon capture could save industry billions – think tank More listening options: No content (including ratings, credit-related analyses and data, valuations, model, software or other application or output therefrom) or any part thereof (Content) may be modified, reverse engineered, reproduced or distributed in any form by any means, or stored in a database or retrieval system, without the prior written permission of Standard & Poor's Financial Services LLC or its affiliates (collectively, S&P).

Midterms could threaten IRA implementation Indonesia eases approvals for new coal plants Mixed ET reactions to latest EU market reforms The Biden administration aims to deploy 15 GW of floating offshore wind capacity by 2035 and is soon to offer deepwater leases specifically for floating wind projects. The Department of Energy’s Floating Offshore Wind Shot, part of its overarching Energy Earthshot program, will contribute to the administration’s goal of deploying 30GW of offshore wind capacity – using either a floating or fixed-bottom technology – by 2030. However, these kinds of clean energy plans could face roadblocks should Republicans gain a congressional majority in the November midterm elections. If that come to pass, Republicans could target implementation of the Inflation Reduction Act and its billions in energy and climate spending. Indonesia, Asia’s fifth largest economy and a major exporter of fossil fuels, has allowed exceptions to a previous proposal to halt approvals of new coal-fired power plants by stating that these approvals will be possible under certain conditions – mainly if they contribute to economic growth, have an emissions reduction plan and are retired by 2050. While the presidential decree still calls for a road map for the retirement of coal-fired power plants, the new approvals indicate pressure to insulate the economy. Meanwhile, in carbon markets, the discount for methane collection and renewable energy carbon credits from China, where forestry credits have historically been at a discount compared with other geographies, has become more pronounced over the last few weeks. Traders and developers cited decline in interest in Chinese credits due to uncertainties. A proposed Eur25 billion windfall tax on oil and gas companies in Europe can be used to drive the energy transition as well as defray energy bills, the European Commission said Sept. 14. Another EC proposal capping inframarginal generator revenues, however, has prompted warnings from the renewables sector that EU member states are too free to intervene, threatening investment. While current volatility is impacting traded volumes of power, EEX CEO Peter Reitz told S&P Global Commodity Insights that in five years’ time it would be clear the current crisis had served to accelerate renewables. Finally the European Parliament has voted to remove strict criteria on the electricity used to generate renewable hydrogen in a revised renewable energy directive (RED II) – a move hailed by electrolysis developers and derided by the solar industry. The dossier continues to be negotiated. – Henry Edwardes-Evans Americas SPGlobal.com US MIDTERMS 2022: IRA bill could be top target of Republican oversight agenda Potential US rail strike threatens coal supply logistics, gas demand forecasts Premium content (available exclusively on Platts Dimensions Pro ) Biden administration sets target of 15 GW floating offshore wind capacity by 2035 Carbon registries, Web3 companies hash out differences on tokenization transparency Liquid ammonia is most effective hydrogen carrier for oversea shipping: Oxford study SPGlobal.com Indonesia to allow new coal-fired power plants under specific conditions Market sees Chinese renewable, methane collection carbon credits at discount Premium content (available exclusively on Platts Dimensions Pro ) Woodside, Japanese companies progress ammonia supply chain study from Australia to Japan Pakistan floods endanger power plants, aggravate energy crisis Fortescue in talks for 9.2-GW renewables-backed hydrogen project in Egypt EMEA EU proposes $25 billion windfall tax on fossil fuel producers to help offset energy crisis OTC power trading volumes dip amid crisis, EEX gains market share: CEO Premium content (available exclusively on Platts Dimensions Pro ) European Parliament votes to ease tough renewable hydrogen feedstock criteria French wind capacity hits 20 GW as offshore era begins, solar above 15 GW Risk of divergent national revenue caps threatens wind investment: WindEurope Chart of the week: The Biden administration aims to deploy 15 GW of floating offshore wind capacity by 2035 Quote of the week : “If someone wants to retire a carbon credit and they don’t want their name to be known and they want to give a gift to the planet anonymously – we see that all the time in philanthropy. Why can’t that be true in carbon credits?” -- Philip Fogel, co-founder of Flowcarbon on the transparency debate in voluntary carbon markets Price of the week: $9.35/mt CO2 Platts CNC nature-based voluntary carbon credit assessment is up 22% in value since the start of August