ACX launches biofuels bodily buying and selling platform in ADGM, Abu Dhabi.
ADGM primarily based ACX Ltd., a part of the ACX Group, announce the beginning of dwell buying and selling on its groundbreaking biofuels digital bodily buying and selling platform, ACXBiofuels, as a part of its Monetary Companies Regulatory Authority (FSRA) regulated Recognised Funding Alternate (RIE), permitting market individuals to facilitate buying and selling in biodiesel, Renewable Diesel (HVO), Sustainable Aviation Gasoline (SAF) and a few of its feedstocks like UCO (Used Cooking Oil) on a 24/5 foundation.
This newest growth is a significant step ahead in biofuels markets because it marks the primary time {that a} regulated buying and selling platform is offered to commerce 24/5 to assist these markets. Introducing a buying and selling platform for bodily biofuels with revolutionary buying and selling options, enhances present digital home windows the place already over 3 million metric tonnes of biofuels are traded per 12 months in Europe.
William Pazos, co-Founder and co-CEO of ACX stated:
ACX’s vary of biofuels merchandise are anticipated to spice up value transparency and consciousness of biofuels pricing worldwide, as all individuals buying and selling in ACX’s market can even be licensed below the Worldwide Sustainability & Carbon Certification program (ISCC).
Biofuels are derived from natural matter which removes carbon from the environment throughout development and utilization. So long as the underlying plant crops are renewable and sustainable, the combustion of biofuels can scale back emissions by mixing into the prevailing pool of fossil gas, decreasing emissions on a one-to-one foundation.
ACX’s vary of biofuels provided on the buying and selling platform embody FAME (Fatty Acid Methyl Esters), RME (Rape Seed Methyl Ester), UCOME (Used Cooking Oils Methyl Ester), HVO (Hydrotreated Vegetable Oil) and PME (Palm Oil Methyl Ester).
ACX can be introducing a world contract for key feedstocks together with UCO (Used Cooking Oils) and POME (Palm Oil Mill Effluent).
Henri-Jean Bardon, Director of Biofuels Platform at ACX stated:
All of the contracts are aligned to customary bodily contracts which might be already broadly traded available in the market.
“A number of the contracts, notably FOB Northwest Europe, might be aligned to present window-traded merchandise, enabling a pure arbitrage.”
The dimensions of the worldwide marketplace for biodiesel and SAF is at present forecast at over 50 million metric tonnes in 2023 and is anticipated to exceed 80 million metric tonnes by 2030, or a price exceeding $104 billion.
The event of biofuels is a crucial a part of wider international efforts to succeed in internet zero emissions by 2050 in already mandated markets like Europe, US, Brazil and Indonesia and with transport accounting for greater than a 3rd of carbon dioxide emissions from end-use sectors, based on the Worldwide Vitality Company.
Biodiesel is already blended into 5% of the worldwide diesel pool, highlighting its effectiveness and broad acceptance as a viable transportation gas.
ACXBiofuels platform offers a novel match between patrons and sellers for present biofuels contracts, corresponding to UCO and POME, that can be used utilizing book-and-claim protocol as accepted by CORSIA and ICAO. ACX can be introducing the primary international bodily SAF biofuels contract to facilitate buying and selling upon the introduction of aviation gas sustainability mandates in Europe that’s beginning January 1, 2025.
By bringing these companies collectively in a single market below the regulatory oversight of Abu Dhabi World Market’s FSRA, ACX offers a trusted, clear, and environment friendly buying and selling platform for patrons and sellers, in addition to arbitrage alternatives to bridge the timing and geographical gaps between publishing platforms and ACX’s market. This additionally enhances ACX’s present carbon alternate and its buying and selling structure.
Concerning the ACX Group:
ACX Group, together with ACX Abu Dhabi (ACX Ltd) and AirCarbon Pte. Ltd., which function environmental buying and selling platforms in Abu Dhabi and Singapore respectively, caters to corporates, monetary merchants, carbon venture builders and different business stakeholders.
ACX Group offers individuals with an environment friendly and clear buying and selling platform that’s user-friendly, seamless and gives the bottom transaction charges available in the market. Leveraging distributed ledger know-how, ACX facilitates and scales development of the environmental product markets to align with international ambitions of reaching Internet Zero.
ACX Group is proud to be a member of the Worldwide Emissions Buying and selling Affiliation (IETA) and the Worldwide Sustainability and Carbon Certification (ISCC), additional enhancing its dedication to sustainability and accountable buying and selling practices for carbon and different environmental merchandise.
ACX Group has garnered worldwide recognition because the Finest Carbon Alternate globally in Environmental Finance’s esteemed Voluntary Carbon Market Rankings for 3 consecutive years (2021, 2022, 2023), solidifying its place as a frontrunner within the business.
READ the newest information shaping the biofuels market at Biofuels Central
ACX launches biofuels bodily buying and selling platform in ADGM, Abu Dhabi, SINGAPORE, LONDON and ABU DHABI, UAE, November 28, 2023
