The trading platform is being developed by Green Gas Trading Limited to create a central marketplace, where buyers and sellers of BMCs can come together to transact.
The platform is a trading exchange where buyers will post bids for BMCs which they wish to buy, and sellers will post offers for BMCs that they wish to offer for sale.
This platform will look and feel very similar to the trading platforms that are routinely used to trade commodities in financial markets. Indeed, the platform is being developed from one of the market leading platforms, and is being adapted for BMCs.
The BMC is a stand-alone product and doesn’t have to be transacted on-exchange – a biomethane producer is perfectly entitled to bundle their BMCs with their gas as a part of their take-off contract with a gas shipper, or to sell them cheap ray bans privately as a bi-lateral deal off exchange.
It is the flexibility of the BMC that makes this possible; the company firmly believes that on-exchange transactions and the wider audience of buyers that this will reach should lead to the best economic result, however the decision on how to realise the value for the BMC is deliberately left in the hands of the producer.
Green Gas Trading Limited as the exchange provider is perfectly positioned to help biomethane producers market their product on or off exchange, and is willing to market the biomethane certificates on behalf of producers.