Major Commodity Index To Now Include SAF Pricing

 - December 4, 2020, 3:21 PM

As a further indication of the growing prominence of sustainable aviation fuel (SAF), global energy and commodity price benchmarking index Argus said Friday that it will begin including the SAF price for U.S. West Coast markets as part of its daily jet fuel report.

Due to local government incentives for SAF programs in California and Oregon, the sustainable fuel industry has gravitated to the region as a hotbed for the development and use of the fuels, now derived from several pathways using feedstocks such as used cooking oil, agricultural residues, and wood waste.

Although SAF is now approved for blending with conventional jet fuels at ratios of up to 50 percent, Rolls-Royce has begun research into the use of pure SAF.

The new U.S. West Coast SAF price will be published in cents per U.S. gallon and will assess the pricing differential between SAF and Los Angeles prompt conventional jet fuel.

“The jet fuel industry will be seeking tools to understand the market value of SAF,” said Argus Media chairman and CEO Adrian Binks. “Argus’s deep understanding of these emerging markets and ongoing market analysis of renewable fuels globally will satisfy these needs.”