S&P Global Platts launches SAF price assessment for the Americas

In New York state, S&P Global Platts announced the launch of the first-to-market Sustainable Aviation Fuel (SAF) price assessment for the Americas, aimed at bringing transparency to a developing market as the airline industry embraces energy transition. This follows the Platts launch of Europe’s first-ever independent price references for sustainable aviation fuel on August 17, 2020.

The new Platts Americas SAF assessments follow active market engagement with producers, consumers, traders and others in the Americas oil and biofuel markets, as the demand for sustainable aviation fuel has grown, as has supply sources.

The cost-based price assessment will be published from September 21 and will reflect the cost of SAF produced from tallow. The daily price assessments will be expressed in US dollars per gallon and reflect the production costs of SAFs for blending into jet fuel. The assessment assumptions will be calculated by S&P Global Platts Analytics based on existing Platts assessments and other fixed costs. The SAF inputs are costs of tallow and hydrogen, added to fixed renewable aviation fuel refinery costs, then deducting the by-products of naphtha, propane and diesel. Platts will also publish a US SAF value that takes into account environmental credits, by deducting the Renewable Identification Numbers under the US Renewable Fuel Standard, credits from the Low Carbon Fuel Standard administered by the California Air Resources Board and, when applicable, the US Biodiesel Tax Credit.