ACXBiofuels, the first regulated 24/5 biofuels trading platform, brings transparency and efficiency to global markets, fostering sustainable solutions and reducing emissions
ADGM-based ACX Ltd., part of the ACX Group, announces the commencement of live trading on its revolutionary biofuels electronic physical trading platform, ACXBiofuels. Operating within its Recognised Investment Exchange (RIE) under the Financial Services Regulatory Authority (FSRA), ACXBiofuels facilitates round-the-clock trading in biodiesel, Renewable Diesel (HVO), Sustainable Aviation Fuel (SAF), and associated feedstocks like UCO (Used Cooking Oil).
This milestone represents a significant advancement in biofuels markets, introducing the first regulated trading platform available for 24/5 trading to support these markets. The innovative trading features complement existing electronic windows, where over 3 million metric tonnes of biofuels trade annually in Europe.
"ACX's biofuel products are set to enhance price transparency and global awareness of biofuels pricing. All participants trading in ACX's market will be certified under the International Sustainability and Carbon Certification program (ISCC)," states William Pazos, co-founder and co-CEO of ACX.
Biofuels, derived from organic matter, sequester carbon during growth and usage. When sourced from renewable and sustainable plant crops, biofuels, blended with fossil fuels, can reduce emissions on a one-to-one basis.
ACX's biofuels range includes 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). The platform also introduces a global contract for key feedstocks like UCO and POME.
"All contracts align with customary physical contracts traded in the market. Some, particularly FOB Northwest Europe, will align with existing window-traded products, enabling a natural arbitrage," notes Henri-Jean Bardon, Director of Biofuels Platform at ACX.
The global biodiesel and SAF market is forecasted to surpass 80 million metric tonnes by 2030, valued at over $104 billion. As part of international efforts to achieve net-zero emissions by 2050, biofuel development is crucial, with transport contributing more than a third of CO2 emissions from end-use sectors, according to the International Energy Agency.
Biodiesel, constituting 5 percent of the global diesel pool, demonstrates its effectiveness and wide acceptance as a viable transportation fuel.
ACXBiofuels introduces a unique platform connecting buyers and sellers for existing biofuel contracts, including UCO and POME, utilising the book-and-claim protocol approved by CORSIA and ICAO. Additionally, ACX introduced the first global physical SAF biofuels contract to facilitate trading with the advent of aviation fuel sustainability mandates in Europe starting January 1, 2025.
By consolidating these services under the regulatory oversight of Abu Dhabi Global Market's FSRA, ACX provides a trusted, transparent, and efficient trading platform, enhancing its existing carbon exchange and trading architecture.