Platts to launch daily market-based European sustainable aviation fuel FOB FARAG barge assessment

Platts, part of S&P Global Commodity Insights, will launch a daily sustainable aviation fuel FOB FARAG barge assessment, effective Sept. 2, 2024.

Platts has recognized the need for an assessment to reflect the flow of sustainable aviation fuel transported throughout Europe via barge.

The SAF assessment will reflect barges basis FOB Flushing-Amsterdam-Rotterdam-Antwerp-Ghent and reflect volumes of 1,000-3,000 mt. Volumes outside this range will be normalized to basis 1,000 mt. Operational tolerance is typically limited to plus or minus 5% of the transacted size for barges.

The assessments will reflect barges loading three-15 (Monday-Tuesday) or five-15 (Wednesday-Friday) days from the date of publication.

The assessment will reflect neat SAF produced via the Hydrotreated Esters and Fatty Acid (HEFA) pathway from Renewable Energy Directive-compliant feedstocks, with an exclusion for Palm Fatty Acid Distillate, and reflect a minimum GHG savings of 85 %. Other GHG savings levels will be considered but may be normalized to the minimum 85% basis level. The assessment will reflect product that holds proof of sustainability obtained in the framework of voluntary schemes approved by the European Commission. Market participants shall exercise reasonable efforts to provide all necessary documentation for Proof of Sustainability.

The SAF value will reflect ASTM D7566 standard specification for Synthesized Paraffinic Kerosene from Hydroprocessed Esters and Fatty Acids, with a relative density of 760 kg/cu m (at 15 degrees Celsius).

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

The neat SAF assessment will 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 will be published as an outright in US dollars per metric ton as well as a premium to the Platts Jet barge FOB FARAG assessment (PJABA00). The methodology and specifications for the jet assessment can be found here.

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

Please submit any feedback, comments, or questions 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.