Platts proposes to launch daily, USGC, ETJ cost-based SAF calculated assessments

Platts, part of S&P Global Commodity Insights, proposes to launch daily calculated assessments representing the cost of production for US Gulf Coast, Ethanol-To-Jet (ETJ) sustainable aviation fuel (SAF), effective April 24, 2025.

The global aviation industry faces increasing pressure to reduce its carbon footprint and meet stringent environmental regulations. Platts has observed a growing interest in ETJ SAF since it provides a solution to lower greenhouse gas emissions associated with air travel. The capacity for ETJ SAF is projected to keep growing, driven by rising demand and ongoing investments in production processes.

The proposed ETJ SAF values would reflect ASTM D7566 standard specification, with a relative density of 759.5 kg/cu m (at 15 degrees Celsius), basis USGC. The ETJ SAF values would be published in cents/gal. Platts would publish values with and without environmental credits by deducting the federal SAF tax credit and D4 biomass-based diesel RINs.

The values would reflect a reference Carbon Intensity (CI) of 33 gCO2e/MMBtu (31.278 gCO2/MJ).

Platts would calculate the credit by multiplying the lifecycle greenhouse gas emissions reduction percentage by the maximum credit price, $1.75/gal. Platts would calculate lifecycle greenhouse gas emissions reduction percentage as a fraction, the numerator of which would be the maximum carbon intensity 50 kgCO2/MMBTU minus the SAF CI of 33 kgCO2/MMBtu and the denominator of which would be the maximum carbon intensity. The credit would be rounded to the nearest hundredth cent.

(50 – 33)/50 x 175 cents/gal = 59.5 cents/gal

Therefore, the total SAF tax credit Platts would use in its US Gulf Coast ETJ SAF without credits prices is 59.5 cents/gal.

These calculated assessments would reflect the cost of SAF produced via the Ethanol-to-Jet pathway. Feedstock would consider ethanol from Brazil's sugarcane and Gulf Coast hydrogen; coproducts would include renewable diesel and naphtha/gasoline; and utilities Gulf Coast natural gas and electricity. Platts daily prices for feedstocks, coproducts, and utilities would also be considered.

The cost-based assessments would follow the Platts US publishing schedule.

Please submit any feedback, comments, or questions about this proposal to mrts_biofuelsandfeedstocks@spglobal.com, and pricegroup@spglobal.com by March 21, 2025.

For written comments, please provide a clear indication if comments are not intended for publication by Platts for public viewing. Platts will consider all comments received and will make comments not marked as confidential available upon request.