S&P World Platts Launches SAF and HVO values in Asia

SINGAPORE, Jan. 19, 2021 /PRNewswire/ — S&P International Platts (“Platts”), the primary impartial service provider of information and benchmark costs for the commodities and power marketplaces, has introduced new sustainable aviation fuel (SAF) and hydrotreated vegetable oil (HVO) price assessments in Southeast Asia successful January 18, 2021. The new assessments will improve transparency in renewable gas marketplaces throughout Asia as the area is set to come to be a large producer of state-of-the-art biofuels.

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The new Platts Southeast Asia SAF, and Platts Southeast Asia HVO, as perfectly as a Employed Cooking Oil rate evaluation in Asia named UCO North Asia comply with Platts initial-to-market place Northwest European SAF and HVO assessments launched on August 17 final year, as perfectly as the launch of SAF values for the US West Coastline on September 21.

In compliance with Paris Agreement commitments, international locations in Asia have a selection of possibilities at their disposal to switch fossil fuels with renewable resources of power. With increasing customer awareness of the environmental effects of transportation, cleaner fuels like SAF synthesized from renewable feedstocks are emerging as a compelling answer to achieve emissions reductions inside the aviation sector itself, in addition to the invest in of carbon credit rating offsets. Irrespective of the go to decarbonization, the bodily current market trading for numerous of these commodities has not yet attained sufficient volumes to assist spot price tag assessments, therefore the expense-based mostly rate for SAF published by S&P World wide Platts will be dependent on existing assessments and other fixed expenses.

Ian Dudden, world-wide pricing director, Metals and Agriculture, S&P World Plattsstated: “Southeast Asian governments are pursuing intense renewable fuels targets which are established to intensify in the foreseeable future. Embracing sophisticated biofuels these types of as HVO and SAF will engage in an vital function in supporting nations achieve these aims. In addition, main airways are already looking at sustainable aviation fuels on a voluntary foundation to reduce their carbon footprint. With these Asia-centered rate assessments rounding out our world-wide featuring, S&P Global Platts is poised to provide bigger transparency and obtain to the global renewable fuel marketplace, helping the market to transition and evolve.”

Hydrotreated vegetable oil – HVO (also recognized as renewable diesel in The usa) is a biomass-derived transportation gasoline suited for use in diesel engines, like biodiesel. Unlike fossil fuels, it is built of nonpetroleum renewable resources this kind of as natural fat, vegetable oils, and greases and can be blended in common diesel or utilized as a substitute. The vast majority of generation currently is derived from squander and residues, such as palm fatty acid distillate (PFAD), tallow (animal unwanted fat), and fish oil.

Patricia Luis-Manso, head of Agriculture & Biofuels analytics, S&P Worldwide Platts mentioned: “HVO creation for road transportation throughout Asia is forecast to exceed 1.8 million mt (metric tonnes) by 2025 and 2.6 million mt by 2030, up from 930,000 mt once-a-year generation in 2020. Financial commitment to extend infrastructure such as NESTE’s Singapore refinery, as perfectly the start of two HVO plants in Indonesia, will gasoline the region’s HVO production heading forward.”

The new SAF and HVO valuations replicate a FOB Singapore price tag, and the launch follows in depth consultation with producers, customers, traders and other individuals in the Asian, European and US oil and biofuel marketplaces as the international desire for renewable diesel grows. The utilized cooking oil feedstock assessment for Asia demonstrates the region’s place as a major exporter.

The HVO evaluation calculation assumptions, supplied by Platts Analytics, are based on present Platts assessments and other fixed costs. The HVO inputs are Applied Cooking Oil North Asia and Japan Hydrogen SMR w/o CCS extra to mounted renewable refinery prices, then deducting the byproducts of Propane Refrigerated CFR North Asia, Naphtha FOB Singapore cargo and Gasoil .001% sulphur FOB Singapore cargo. S&P Global Platts is dedicated to reviewing its methodology technical specs and assumptions on an ongoing basis as the renewable diesel marketplace evolves, and Platts will go on to engage with the market.

Further particulars about the S&P World wide Platts SAF & HVO value-based mostly selling price evaluation methodology can be observed in the Subscriber Note.

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Americas:Kathleen Tanzy + 1 917-331-4607, [email protected]

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