Melbourne outfit launches carbon market trading platform
A software platform described as an essential tool for understanding and accessing rapidly developing carbon markets has been launched by its Australian developers, alongside the completion of a landmark transaction by the Australian Carbon Credit Unit (ACCU).
On Friday, Melbourne-based Renewable Energy Hub launched its carbon and clean energy workshop Core Markets, an over-the-counter platform for wholesale market promoters, project developers and end users. .
As RenewEconomy reported, the company has worked with support from the Australian Renewable Energy Agency to develop a suite of innovative, standardized hedging contracts to meet the needs of a transitioning energy market.
The Core Markets platform provides access to spot and forward contracts in the carbon and power markets with a new range of clean energy products developed by Renewable Energy Hub, and a full range of carbon credits and environmental market certificates.
The product, which includes price data and insights, co-benefit visibility and benchmarking, is backed by Renewable Energy Hub’s market-leading advisory and transactions team, which combines 20 years of experience in the energy and environment markets in Asia-Pacific.
“As activity in the carbon market increases, the need for market data, greater transparency and appropriate access becomes even more important,” said Chris Halliwell, Co-Founder and Head of Markets of Renewable Energy Hub.
Alongside the release of the platform, Renewable Energy Hub also announced the execution of its first carbon ACCU “Put option” trade in 100k units – signaling a new level of sophistication and scale in the ACCU market.
The put option provides the buyer with downside protection via the right (but not the obligation) to sell ACCUs in early 2023 at a fixed price, with the option buyer paying an initial premium at the seller for the contract.
Halliwell said the completion of this transaction demonstrated the speed at which the ACCU market and other carbon markets are growing – and the need for structure and solutions at a time of dramatic transition:
“Consumer demand for net zero imperatives has driven businesses and investors to decarbonize and the CORE Markets platform is an essential tool for understanding and accessing the market,” he said.
Earlier this year, Renewable Energy Hub designed a ‘virtual storage’ electricity swap contract between Hydro Tasmania and two buyers – Macquarie Group and Shell-owned ERM Power.
The ‘game-changing’ moment was to sell the rights to the most expensive energy periods of the day’s ‘dump’ and buy a fixed block of MW of energy ‘load’ at a low price.