The tender was published by the Prime Minister’s Office Strategy Group on September 30, 2024, and it was scheduled to close in January before being extended. The tender stipulated that the credits must be delivered by February 2031 at the latest.
The total value of all offers submitted exceeded 1.3 billion Singapore dollars ($1 billion). A wide variety of credit prices were submitted, with most indicated between S$25-55 ($18.73-41.20) per tonne of CO2 equivalent (tCO2e) and the majority at S$30-40 ($22.47-29.97) per tCO2e. Many submissions included different values depending on delivery year, with higher prices typically proposed for credits with a later delivery.
Fastmarkets’ Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA) Phase 1 assessment was $21.74 per tCO2e in the week to Wednesday February 19.
The price represents spot credits currently tagged as eligible for the program, with qualifying credits requiring a corresponding adjustment to avoid the risk of double counting. Only the credits from one project – the Jurisdictional Reducing Emissions from Deforestation and Forest Degradation (JREDD) Guyana ART TREES project (ART 102) — are currently eligible.
Trafigura make premium offer
Trafigura’s offer was the largest by overall value, equivalent to $224 million, but total volumes and supply dates were unavailable.
Mercuria submitted two different offers for the supply of 5.36 million tCO2e of credits. The first averaged the equivalent of $28.84 per tCO2e, while the second averaged the equivalent of $26.51 per tCO2e. Further stipulations were placed on both offers, as well as details of price by delivery year and project, but they were not fully disclosed.
Singapore-based carbon trader Carbon Solutions Services’ offer included the supply of 500,000 tCO2e of credits from the Kwahu Landscape Restoration Project in Ghana and the SA Impact Forestry Fund in Paraguay at the equivalent of $41.16 per tCO2e. This was the highest average price per tCO2e that was disclosed.
At the low end, Malaysia-based project developer and carbon consultancy CarbonTrace submitted an offer at the equivalent of $18.72 per tCO2e for the supply of 1 million tCO2e, but no further details were given.
Carbon credit supplier ITMO limited included limited details in its supply of 1 million tCO2e of credits at $20 per tCO2e; this was the only bid submitted in US dollars instead of Singapore dollars.
Other submissions included US-based sustainability company Native’s offer for the supply of 5.4 million tCO2e of credits, averaging the equivalent of $26.46 per tCO2e.
It included the supply over five years at an increasing credit value, with 1 million tCO2e to be delivered at the equivalent of $19.76 per tCO2e, 1 million tCO2e delivered at the equivalent of $21.80 per tCO2e, 1 million tCO2e delivered at the equivalent of $25.86 per tCO2e, 1.2 million tCO2e at the equivalent of $29.92 per tCO2e and a further 1.2 million tCO2e at the equivalent of $32.97 per tCO2e.
Singapore-based Climate Asset Facility offered a total of 1.75 million tCO2e across 2027-2031 for an average price of S$41.80 ($31.28) per tCO2e. The price was placed at a 50% discount to the Singapore Carbon Tax, equating to S$22.50 in 2027, S$24 in 2028, S$25 in 2029, S$30 in 2030 and S$40 in 2031, plus a flat corresponding adjustment fee of S$13.50 per tCO2e.
PetroChina looked to supply a total of 500,000 tCO2e over a three-year period for a total equivalent to $16.34 million. The supply of credits in 2027 would be valued at the equivalent of $29.09 per tCO2e, 2028 at $29.84 per tCO2e and 2029 at $37.32 per tCO2e.
Project developer Boomitra offered to supply 625,000 tCO2e of carbon removal credits, averaging the equivalent of $27.25 per tCO2e.
Investment manager Conductor Capital Asset Management’s offer included the supply of 540,000 tCO2e at the equivalent of $28.21 per tCO2e. The company stated that the volume corresponds to the total volume of Article 6 authorized credits it expects to generate by 2030. It expects a total of 2,740,000 tCO2e of Article 6 authorized credits to be generated over a 20-year period.
DNZ ClimateTech included the supply of 5 million tCO2e of credits over a five-year period, averaging the equivalent of $29.93 per tCO2e.
Nikunj Nangalia from decarbonization solutions provider Renew submitted an offer for the supply of 2 million tCO2e of credits to be delivered equally over 2028 and 2030, priced at the equivalent of $22.45 per tCO2e and $24.69 per tCO2e, respectively.
US-based carbon solutions provider Rubicon’s submission was for the supply of 838,725 tCO2e at the equivalent of $24.26 million, averaging $28.92 per tCO2e.
Shell Eastern Trading’s offer was for an undisclosed volume at the equivalent of $25.47 million, with the caveat that it was supplied on an indicative basis and subject to Shell management approval.
Details of the Singapore-based Climate Impact Solutions offer were limited, with the total value placed at the equivalent of $2.99 million.
DRW subsidiary Artemeter submitted an offer, but limited details were disclosed, with the company saying that the volumes and price can be negotiated.
Finally, project developer X Carbon submitted a bid for the supply of credits over a five-year period for the equivalent of $83.79 million.
The results of the tender are still pending award.
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