Platts will launch daily SAF assessments for California and Illinois, excluding environmental credits

Platts, part of S&P Global Commodity Insights, will launch four daily market-based US California and US Illinois sustainable aviation fuel assessments that will exclude environmental credits, effective Aug. 18, 2025.

The global aviation industry continues to make significant progress toward achieving the Carbon Offsetting and Reduction Scheme for International Aviation's net-zero target, driven by efforts to reduce carbon intensity and greenhouse gas emissions. In parallel, the US, at both federal and state levels, has introduced various incentives to support the growth of low-carbon fuels, including SAF, contributing to a steady rise in production and consumption.

Following extensive feedback from market participants, Platts has identified a clear demand for transparent, market-based SAF assessments. Additionally, stakeholders, particularly airlines and aviation fuel buyers, have expressed the need for assessments that reflect the market value of SAF, independent of environmental credits such as Renewable Identification Numbers, Low Carbon Fuel Standard credits, or 45Z tax credits.

Platts is therefore launching four SAF assessments that will exclude environmental credits, in response to market feedback that the value of SAF with credits detached are a more widely used price reference, particularly among airlines seeking clarity on the intrinsic value of SAF itself.

The new assessments will have the following specifications:

SAF (H-S) California (credits detached)

The California neat SAF (HEFA-SPK) assessment will be published as an outright price in US cents/gallon, as well as a premium to the Platts Jet Kero LA pipeline (PJAAP00) assessment. The assessments will be exclusive of the California Low Carbon Fuel Standard carbon credit, federal SAF tax credit and D4 biomass-based diesel Renewable Identification Number. This will be assessed on a delivered at place basis and reflect SAF delivered via rail car or barge to Los Angeles. Neat SAF delivered to other locations within California, such as San Francisco, will also be considered, but may be normalized back to the basis location.

SAF (H-S) Illinois (credits detached)

The Illinois neat SAF (HEFA-SPK) assessment will be published as an outright price in US cents/gallon, as well as a premium to the Platts Jet Kero Chicago pipeline (PJAAF00) assessment. The assessments will be exclusive of the Illinois SAF tax credit, federal SAF tax credit and D4 biomass-based diesel RINs. This will be assessed on a DAP basis and reflect SAF delivered via rail car or barge to the Chicago area.

Both assessments will reflect delivery five to 25 days forward.

The assessments will reflect a minimum volume of 1,000 barrels, meeting the ASTM D7566 standard specification for Synthesized Paraffinic Kerosene from Hydroprocessed Esters and Fatty Acids (SPK-HEFA), as referenced in Annex A2, using feedstocks such as vegetable oils, waste oils, fats, tallow and other similar feedstocks. Platts will not consider SAF produced from palm oil or palm fatty acid distillate within the assessment. The values will reflect a reference carbon intensity of 42gCO2e/MJ.

The assessments will consider information reported to Platts and published as heards 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 assessments will reflect a 13:30 Houston time market close and will 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.

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.