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Platts launches US West Coast SAF ex-refinery prices

  • Prices based on analyzed cost inputs
  • Published with environmental credits and without credits, in cents/gal, $/mt and $/b

S&P Global Platts has launched new sustainable aviation fuel (SAF) valuations for the US West Coast, to be called Platts US West Coast SAF, effective Sept. 21, 2020.

Platts has observed growing interest in renewable fuels across the transportation markets, including aviation, in part driven by the transition to lower carbon fuels. Markets in many of these commodities have not yet reached sufficient volumes to support spot price assessments. Platts has analyzed the costs involved and is now publishing calculated values that reflect this as a cost-based price for SAF.

The primary SAF value is published in cents/gal inclusive of environmental credits. Platts publishes an additional value without environmental credits by deducting the value of Renewable Identification Numbers under the Renewable Fuel Standard, credits from the Low Carbon Fuel Standard administered by CARB and, when applicable, the federal biomass-based diesel blender's tax credit.

The values with and without credits are also published in $/mt using a 3.4 conversion factor and in $/barrel using a 0.42 conversion factor. This implies a $/mt to $/b conversion factor of 8.105.

The USWC SAF prices are ex-refinery basis California reflecting ASTM D7566 standard specification, with a relative density of 776 kg/cu m (at 15 degrees Celsius).

The ex-refinery prices are based on relevant costs and are published under the following symbols and units:

Unit
PGA - w/ credits
PGA - w/o credits
PBF - w/ credits
PBF - w/o credits
cents/gal
ASAFI00
ASAFJ00
ASAFK00
ASAFL00
$/mt
ASAFA00
ASAFB00
ASAFC00
ASAFD00
$/barrel
ASAFE00
ASAFF00
ASAFG00
ASAFH00

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

The valuation assumptions are calculated by S&P Global Platts Analytics based on existing Platts assessments and other fixed costs. Fixed costs will be reviewed on at least an annual basis. Platts will review the specifications and assumptions going forward based on market feedback and as markets develop.

The SAF inputs are Packer Grade Beef Tallow Dlvd Chicago (ATALA00) and Hydrogen California SMR w/o CCS (incl CAPEX) (IGZBL00), added to fixed renewable aviation fuel refinery costs, then deducting the byproducts of Gasoline Unl 84 Los Angeles CA Pipeline (AAUHA00), Propane non-LST Mt Belvieu pipe Mo01 (PMAAY00) and ULSD No2 CARB Diesel Los Angeles CA Pipeline (POAAK00).

Platts may normalize the Chicago packer-grade tallow assessment to account for freight to California and a quality differential between packer tallow and an alternative grade used for SAF production.

The Platts-published environmental credits deducted for the values without credits are Biodiesel RIN Cal Yr02 (BDRCY02) and the Low Carbon Fuel Standard Carbon Credits Front Quarter (AAXYA00).

The launch follows Platts first-to-market Northwest European SAF and HVO (hydrotreated vegetable oil, which is equivalent to renewable diesel) valuations launched on Aug. 17 as well as extensive consultation of producers, consumers, traders and others in the European and US oil and biofuel markets as the demand for sustainable aviation fuel grows in consumption and supply.

Please send any comments or feedback to Americas_ags@spglobal.com, americas_products@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.