Platts proposes to launch daily market-based SAF European assessment

Platts, part of S&P Global Commodity Insights, proposes to launch a daily sustainable aviation fuel assessment, effective Sept. 1, 2023.

Platts has observed a growing supply of SAF, driven by the transition to low-carbon fuels following the development of the Carbon Offsetting and Reduction Scheme for International Aviation, in addition to individual country programs that support the decarbonization of aviation fuel.

The proposed neat SAF assessment would be CIF basis Amsterdam Rotterdam Antwerp and reflect volumes 500-5,000 mt. Other locations within Northwest Europe would be considered for the assessment but may be normalized to reflect basis ARA. The assessment would reflect delivery 10-25 days forward.

The assessment would reflect SAF produced from Renewable Energy Directive-compliant feedstocks, with an exclusion for Palm Fatty Acid Distillate.

The neat SAF assessment would consider market information reported to Platts and published throughout the day, including firm bids and offers, trades, and indicative values, as well as any other data deemed relevant to the assessment process.

The SAF price would be published as an outright price in US dollars per metric ton as well as a premium to the Platts Jet Cargoes CIF NWE assessment (PJAAU00). The methodology and specifications for the jet assessment can be found here.

The assessments would reflect a 1630 pm London time market close and would follow the London publishing schedule.

The new SAF assessment would meet DEFSTAN requirements reflecting standard commercial Jet-A1 specifications, as defined by the UK Ministry of Defense in DEFSTAN 91-091 and the Joint Fuelling System Checklist. The UK Ministry of Defense has updated DEFSTAN 91-091 periodically and Platts reflects the latest issue.

Platts proposes to also publish two calculated SAF and jet fuel blends using the new SAF assessment and the CIF NWE jet fuel assessment. The two proposed blend ratios are 30% SAF/70% jet fuel and 40% SAF/60% jet fuel.

Platts invites feedback on the required minimum GHG savings for the proposed SAF basis ARA assessment as well as required Proof of Sustainability requirements.

The new SAF CIF NWE, basis the ARA price assessment, would be published in addition to the production cost-based SAF prices.

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

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.