Platts to launch daily market-based SAF European assessment

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

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

The new SAF assessment will reflect product that holds proof of sustainability obtained in the framework of voluntary schemes approved by the EU Commission. Market participants shall exercise reasonable efforts to provide all necessary documentation for Proof of Sustainability documentation.

The assessment will reflect SAF produced from Renewable Energy Directive-compliant feedstocks, with an exclusion for Palm Fatty Acid Distillate, and will reflect minimum GHG savings of 80%. Other GHG savings levels will be considered but may be normalized to the minimum basis level.

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

The new SAF assessment will meet 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.

SAF uses a $/mt to $/b conversion factor of 8.105. SAF values reflect ASTM D7566 standard specification for Aviation Turbine Fuel Containing Synthesized Hydrocarbons, with a relative density of 776 kg/cu m (at 15 degrees Celsius).

The new SAF CIF NWE, basis ARA price assessment, will be published in addition to the production cost-based SAF prices. Platts will continue to publish the cost-based model, the details of which can be found here: https://www.spglobal.com/commodityinsights/PlattsContent/_assets/_files/en/our-methodology/methodology-specifications/platts-saf-and-hvo-faq.pdf

Platts continues to invite feedback regarding relevant calculated blend ratios.

Please submit any further 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.