Platts will launch FOB Singapore HVO, SAF and North Asia UCO prices Jan 18

S&P Global Platts will launch new sustainable aviation fuel (SAF) and hydrotreated vegetable oil (HVO) valuations in Southeast Asia, to be called Platts Southeast Asia SAF and Platts Southeast Asia HVO, and a Used Cooking Oil assessment in Asia called UCO North Asia effective Jan. 18, 2021.

Platts has observed growing interest in renewable fuels across the transportation markets, including aviation, in part driven by the transition to lower carbon fuels. Markets in many of these commodities have not yet reached sufficient volumes to support spot price assessments. Platts has analyzed the costs involved and is now publishing calculated values that reflect this as a cost-based price for SAF.

The new SAF and HVO valuations reflect FOB Singapore prices based on relevant costs and will be published under the Platts symbols:

The decision follows extensive consultation of producers, consumers, traders and others in the Asian, European and US oil and biofuel markets as the global demand for renewable diesel grows.

The prices will be published on Platts Global Alert, Platts Biofuels Alert, and in European Marketscan, US Marketscan, APAG Marketscan, Oilgram Price Report and Biofuelscan.

The SAF and HVO inputs are Palm Fatty Acid Distillates (PFAD) FOB Indonesia (APFAD00) and Japan Hydrogen SMR w/o CCS Including Capex (IGYGC00), added to fixed renewable aviation fuel refinery costs, then deducting the byproducts of Propane Refrigerated CFR North Asia (AAWVD00), Naphtha FOB Singapore Cargo (PAABP00) and Gasoil 0.001% S (10 ppm) FOB Spore Cargo (AAOVC00).

Platts will normalize the Japan Hydrogen SMR w/o CCS Including Capex and Propane Refrigerated CFR North Asia assessments to account for freight to Singapore.

The decision follows Platts first-to-market Northwest European SAF and HVO (hydrotreated vegetable oil, which is equivalent to renewable diesel) valuations launched on Aug. 17, 2020, as well as the launch of SAF valuations for the US West Coast on Sept. 21, 2020.

Platts will also launch a new Asian used cooking oil feedstock assessment, as Asia is one of the largest exporters. In the absence of pricing data on an FOB China basis, Platts may consider pricing data for associated markets such as the UCO CIF ARA (AUCOA00) factoring the normalized container freight rate for the route PCR1 North Asia – North Continent (PCR0100).

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