Platts to update SAF FOB Straits assessment Feb 2

Platts, part of S&P Global Energy, will update its daily FOB Straits neat sustainable aviation fuel (SAF) freight netback assessment to a market-based price assessment, effective Feb. 2, 2026.

The decision follows the observation of a growing supply of SAF in the Straits of Malacca region, driven by the transition to low-carbon fuels following the development of the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA), coupled with increasing country-level SAF targets. The current annual production capacity for this region is close to 1.9 million metric tons of SAF, calculated by Platts, with more announced capacity coming online in the near future. The new market-based price assessment will also align with the increasing need for pricing transparency in the region.

The updated assessment will consider market information reported to Platts and published throughout the day, including firm bids and offers, transactions and indications, as well as any other data deemed relevant to the assessment process. In the absence of neat SAF spot market data, Platts will also take into consideration the freight netback value of the Platts CIF Northwest European neat SAF cargo assessment (AJNWD00), the cost of SAF feedstocks, and other adjacent markets such as renewable diesel (HVO).

Platts launched the FOB Straits neat SAF netback assessment on Oct. 1, 2024. More details can be found here.

The netback price assessment is on FOB Straits basis and takes into account the freight rate of Rotterdam-SE Asia 5 kt Weekly (AARJE00), the Platts CIF Northwest European neat SAF cargo assessment (AJNWD00), and a market-based differential.

The updated assessment will reflect a parcel size of 5,000-10,000 mt. Other volumes may be taken into consideration and normalized to the assessed range. SAF vessels loading out of the Straits could consist of multiple cargoes or be co-mingled with other compatible products.

The updated assessment will remain on an FOB Straits basis. Other locations within Southeast Asia, such as Indonesia and Thailand, will be considered for the assessment, but may be normalized to reflect the Straits basis.

The updated assessment will reflect cargoes loading 15- 30 days forward from the date of publication.

The assessment will reflect ASTM D7566 standard specifications for Synthesized Paraffinic Kerosene from Hydroprocessed Esters and Fatty Acids (SPK-HEFA), as referenced in Annex A2, with a relative density of 760 kg /cu m (at 15 degrees Celsius). The assessment will reflect SAF produced from Renewable Energy Directive-compliant feedstocks, with an exclusion for PFAD ( Palm Fatty Acid Distillates), and Category 3 tallow, and reflect minimum GHG savings of 80%. Other GHG savings levels, such as 85% GHG savings, will be considered but may be normalized to the minimum basis level. The SAF assessment will reflect ISC C E U-certified cargoes. ISCC CORSIA-certified cargoes will also be considered, but may be normalized.

The affected assessments and the symbols are:

The updated market-based assessment will be published as an outright price in $/mt under the symbol SFSMT00, and in $/b under the symbol SFSBB00, by applying a mt to barrel conversion factor of 8.276.

The change in methodology was first proposed in a subscriber note published Nov. 27, available here.

Platts will also publish a SAF FOB Straits premium versus the Platts Jet Kero FOB Spore assessed forward strip (PJABS00). The forward strip, also known as the MOPS strip, is defined as the average of the forward values for Jet Kero loading 15 to 30 days forward, coinciding with the same loading dates reflected in the SAF FOB Straits assessment.

The specifications of the SAF FOB Straits premium would be the same as the outright price mentioned above.

The SAF FOB Straits assessments and the new premium assessments will be published on fixed pages 2013 of Platts Biofuels Alert, on fixed pages 1410 and 1411 of Platts Global Alert and Platts Refined Products Alert, and in the following publications: Biofuelscan, Fuel Ethanol report, Biomass-Based Diesel report, and Oilgram Price report. The SAF FOB Straits assessments will no longer be published on fixed page 1013, effective Feb. 2.

The full methodology and specifications for Platts biofuel assessments can be found here.

Please send any questions, comments, or feedback to platts_biofuels@spglobal.com and pricegroup@spglobal.com.

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