S&P Global Platts has launched a daily Sustainable Aviation Fuel (SAF) price assessment in Europe which shows the cost of SAF produced from used cooking oil on an ex-refinery basis in Northwest Europe. The daily price assessments, published in dollars per metric ton, reflect the production cost of SAFs for blending into jet fuel.
According to Vera Blei, Head of Oil Markets Pricing, S&P Global Platts: “Despite an environment where airlines are under exceptional pressure from demand destruction, the green agenda is still being progressed and airlines remain committed to decarbonisation. While the Sustainable Aviation Fuel market evolves with the emergence of a spot market, our new cost-based assessment will add critical transparency allowing market participants to compare the price of traditional jet fuel with the cost of new Sustainable Aviation Fuel.”
Platts is already considering additional assessments in other geographies, including the US and Asia.
The new Platts SAF assessments follow extensive consultation with producers, consumers, traders and others in the European oil and biofuel markets as the demand for sustainable aviation fuel grows in consumption and supply.
The Platts SAF assessment assumptions have been calculated by S&P Global Platts Analytics based on existing Platts assessments and other fixed costs. The SAF inputs are costs of Used Cooking Oil CIF ARA and Hydrogen Netherlands, added to fixed renewable biojet refinery costs, then deducting the by-product credits to include FOB ARA Propane, Naphtha CIF NWE cargoes and Diesel CIF NWE ARA Cargoes. S&P Global Platts will review the specifications and assumptions going forward based on market feedback and as the SAF market develops.
