Volatile sustainable aviation fuel prices highlight scaling challenges

The volatility in sustainable aviation fuel prices is being amplified by the small size of the market and thin pool of suppliers. This highlights the limitations of the dominant hydrotreated esters and fatty acids pathway and raises concerns about the sector’s ability to expand to meet rising mandates, industry experts told Platts, part of S&P Global Energy.

"The capacity is limited and the number of sellers is limited, and so in those conditions, it also further magnifies the effect of hedging strategies," Aether Fuels CEO Conor Madigan said, adding that many airlines decided to delay purchases, expecting prices to decline or seeking to postpone balance sheet impacts.

Listen: The Human Factor in Investing

In this episode of the “Private Markets 360°” podcast, David Fann, partner, senior managing director and head of investor relations at VSS Capital Partners, joined hosts Chris Sparenberg and Jocelyn Lewis to explore changes in structured capital, the needs of lower middle-market businesses, and how VSS is helping entrepreneurs unlock value and scale through flexible capital solutions. Fann also shared his perspective on building resilient companies, adapting to economic and geopolitical challenges, and the future of investor relations.