Wedoany.com Report-Apr. 7, New York’s Department of Citywide Administrative Services (DCAS) has awarded its first contract to purchase renewable diesel for the city’s ferries. This step aligns with a plan announced in October 2024 to shift the Staten Island Ferry and other city vessels to renewable diesel. The contract involves barge delivery and is priced based on the New York Harbor R99 rate, published by Argus, a global energy and commodity price reporting agency. This move supports DCAS’s efforts to reduce greenhouse gas emissions from the New York City Ferry service.
Renewable diesel, known as R99, is a biofuel that directly replaces petroleum diesel without requiring engine changes. Its use has expanded across the United States, driven by environmental goals. In California, the Low Carbon Fuel Standard has encouraged significant investments in renewable diesel production. Two major refineries—P66 Rodeo and the Martinez renewables project, a collaboration between Neste and Marathon—have transitioned from producing petroleum diesel to renewable diesel. Additionally, companies have increased renewable diesel production capacity along the US Gulf Coast to meet growing demand.
Several New York City agencies, including DCAS, the Department of Transportation, the Department of Environmental Protection, and NYC Parks, have already started testing renewable diesel in their vessels. The new barge contract will facilitate a broader, long-term shift to this fuel for city-owned boats. Argus provides detailed market insights, including price assessments for renewable diesel in California and the US Gulf Coast, supporting such transitions.
Adrian Binks, chairman and chief executive of Argus Media, said: "We developed our renewable diesel prices in close consultation with buyers and sellers to provide essential transparency around market value in this evolving space. We are delighted that DCAS is using our price for its ferry fleet transition program."
Keith Kerman, DCAS Deputy Commissioner and NYC Chief Fleet Officer, stated: "We have already moved all our heavy-duty and off-road vehicles to renewable diesel, making us the first major East Coast city to adopt green technology on such a large scale. As announced by the City in October 2024, step two is to move NYC’s ferries and vessels to this more environmentally friendly fuel. DCAS contracts with Argus for fuel market information and Argus has now provided us with a new resource to compare renewable with conventional fuel pricing in our contracts."
Argus publishes its R99 prices daily in the Argus Americas Biofuels report. R99 is the most traded type of renewable diesel in major US markets, with prices reflecting volumes excluding tax credits or government mandates. As a leading provider of renewable fuel benchmarks, Argus supports indexes for renewable diesel, sustainable aviation fuel, and used cooking oil worldwide. These indexes serve as the basis for futures contracts in the US, Europe, and Asia, aiding the global shift toward cleaner energy options.
