Renewable Energy Certificate (REC) futures developed by IncubEx , the first-ever such products listed on a futures exchange, have successfully launched on Nodal Exchange.
On May 31st, IncubEx and its partner Nodal Exchange launched nearly a dozen new REC futures: Connecticut Class II and Class III RECs, Massachusetts Class II RECs, New Hampshire Class I and Class III RECs, Rhode Island (New) RECs, Maine Class I RECs, District of Columbia Tier I and Solar RECs, Ohio Non-Solar and Solar RECs.
The first Connecticut Class II REC futures contract transacted on the date of launch for 5,000 Vintage 2019 RECs delivered in May of 2020 at a price of $16.00 per REC (MWh).
On Monday, the first D.C. Solar REC futures contract transacted on Nodal Exchange for 1,500 Vintage 2021 SRECS delivered in February of 2022 at a price of $420.00 per SREC (MWh).
“These contracts mark a significant milestone for IncubEx and our partners at Nodal,” said Daniel Scarbrough, President and COO of IncubEx.” With the launch of these contracts, we’re breaking new ground in the REC markets and delivering the a more comprehensive set of hedging tools for renewable generators, load serving entities and other stakeholders. The initial trades show there is serious interest in risk management tools for these markets and we will continue to deliver products based on customer feedback.”
The new REC products complement the first set of environmental contracts launched on Nodal on November 16, 2018 that included futures and options on: New Jersey Solar Renewable Energy Certificates, PJM Tri-Qualified Renewable Energy Certificates and 11 other emissions and renewable contracts, plus contracts on California Carbon Allowances, Regional Greenhouse Gas Initiative Allowances (RGGI).
IncubEx is an incubator for exchange traded products, services, and technology solutions. At its core, IncubEx is a product and business development firm. The company works in conjunction with its global exchange partner, European Energy Exchange (EEX) and other leading service providers and stakeholders to design and develop new financial products in global environmental, reinsurance, and related commodity markets. The company has a specific focus on innovation and continuous improvement of products and services, including technology, trading solutions, and operational efficiencies. The IncubEx team is comprised of former key Climate Exchange executives and is uniquely positioned to capture these opportunities with its partners. The company was founded in 2016 and currently has offices in Chicago and London.
About Nodal Exchange
Nodal Exchange is a derivatives exchange providing price, credit and liquidity risk management solutions to participants in the North American commodities markets. Nodal Exchange is a leader in innovation, having introduced the world’s largest set of electric power locational (nodal) futures contracts. As part of EEX Group, a group of companies serving international commodity markets, Nodal Exchange currently offers over 1,000 contracts on hundreds of unique locations, providing the most effective basis risk management available to market participants. In addition, Nodal Exchange offers a Henry Hub natural gas contract providing cross-margining benefits with participant’s power portfolios. All Nodal Exchange contracts are cleared by Nodal Clear which is a CFTC registered derivatives clearing organization. Nodal Exchange is a designated contract market regulated by the CFTC.
Nodal Exchange Public Relations
Nicole Ricard, 703-962-9816