Platts to launch daily USGC ETJ cost-based SAF calculated assessments from April 24

Platts, part of S&P Global Commodity Insights, will launch a daily calculated assessment representing the cost of production for US Gulf Coast, ethanol-to-jet sustainable aviation fuel, effective April 24, 2025.

The global aviation industry faces increasing pressure to reduce its carbon footprint and meet stringent environmental regulations. Platts has observed 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 ETJ SAF values will 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 will be published in cents/gal. Platts will publish values with and without environmental credits by deducting the federal SAF tax credit and D4 biomass-based diesel RINs.

The values will reflect a reference Carbon Intensity of 33 gCO2e/MMBtu (31.278 gCO2/Mj).

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

(50 - 33)/50 x 175 cents/gal = 59.50 cents/gal

Therefore, the total SAF tax credit Platts will use in its USGC ETJ SAF without credits prices is 59.50 cents/gal.

These calculated values will reflect the cost of SAF produced via the ethanol-to-jet pathway. Feedstock considered will be ethanol from Brazil's sugarcane and Gulf Coast hydrogen; coproducts will include renewable diesel and naphtha/gasoline; and utility costs will include Gulf Coast natural gas and electricity. Platts daily prices for feedstocks, coproducts, and utilities will also be taken into account.

The cost-based values will follow the Platts US publishing schedule. For days when Brazil there is a publishing holiday in Brazil but not in the US, Platts will take the last published Brazil ethanol price.

The launch of the new values was first proposed in a subscriber note published March 6, available here(opens in a new tab).

Please submit any feedback, comments, or questions about these prices to mrts_biofuelsandfeedstocks@spglobal.com and pricegroup@spglobal.com.

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