Platts to launch China HVO and SAF prices based on UCO feedstock

S&P Global Platts will launch new sustainable aviation fuel (SAF) and hydrotreated vegetable oil (HVO) valuations in China, based on its Used Cooking Oil (UCO) North Asia assessment (AUCOC00), to be called Platts HVO (UCO) North Asia, and Platts SAF (UCO) North Asia, effective Dec. 1, 2021.

The growing refining capacity for advanced biofuels in China will make the region an important production hub in the future.

Platts has also observed growing interest in renewable fuels across the transportation markets, including aviation, in part driven by the transition to lower carbon fuels.

However, markets in these commodities have not yet reached sufficient volumes to support spot price assessments.

The new SAF and HVO valuations will reflect a FOB China price based on relevant costs, including Used Cooking Oil based on its UCO North Asia assessment (AUCOC00)

The new SAF and HVO valuation inputs will be UCO North Asia (AUCOC00) and Japan Hydrogen SMR w/o CCS Including Capex (IGYGC00), added to fixed renewable aviation fuel refinery costs, then deducting the byproducts of Propane Refrigerated CFR South China (AABAK00), Naphtha C+F Korea Cargo (PAADE00), and Gasoil LP C+F South China Cargo (POAFA00) for the SAF valuation.

The prices will be published on Platts Global Alert, Platts Biofuels Alert, and in European Marketscan, US Marketscan, APAG Marketscan, Oilgram Price Report and Biofuelscan.

Platts launched its first Southeast Asia SAF and HVO prices based on Palm Fatty Acid Distillates (PFAD) feedstock on Jan. 18, 2021: Platts launches FOB Singapore HVO, SAF, North Asia UCO prices Jan 18 | S&P Global Platts (spglobal.com)

Platts will also change the name of the assessments Platts Southeast Asia SAF and Platts Southeast Asia HVO to Platts SAF (PFAD) Southeast Asia and Platts HVO (PFAD) Southeast Asia respectively, effective Dec 1 2021.

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