First-Ever Physical Delivery of California Low Carbon Fuel Standard Futures Completed on Nodal Exchange

Today, market participants on Nodal Exchange completed the first-ever physical delivery of LCFS credits from a futures contract.

The credits were delivered in the LCFS Reporting Tool and Credit Bank & Transfer System (LRT-CBTS) operated by the California Air Resources Board. 

The California LCFS futures and options contracts were launched on Nodal Exchange in January 2020. The California LCFS contracts were the first listed renewable fuels contracts for Nodal, which partnered with IncubEx to design and market the product. Nodal and IncubEx launched complementary Oregon Clean Fuels futures and options contracts in June 2020. Nodal’s contract is unique in providing physical delivery of LCFS credits upon contract expiration. These products are part of the broadest slate of environmental futures contracts available on any exchange.

The IncubEx team worked closely with market participants to develop a physical product that directly addresses the needs of obligated compliance parties and project developers alike.

IncubEx and Nodal Exchange are closely watching these ongoing developments and other programs, which could further expand the renewable fuels markets in North America. 

Nathan Clark, managing director at IncubEx is available to speak with you about the LCFS and renewable fuels sector if you are interested in these growing and dynamic markets.

Please feel free to reach out to connect at your convenience. 

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