On this week’s episode of the SAF Podcast Sophie Byron, Global Head Biofuels Pricing, S&P Global Commodity Insights joins Oscar for a discussion around SAF pricing.

Tracking SAF prices is not as simple as traditional jet fuel. In a nascent market with complex supply chain and production pathways, getting accurate pricing data is no easy feat. Sophie explains this complexity and the challenge addressing issues across fluctuating feedstock pricing, production costs and limited transactions on the spot market and how they work around these to assess accurate prices. Another critical issue is how to approach pricing SAF from different pathways and feedstocks, Sophie explains how they are looking to approach pricing from Alcohol-to-Jet and eventually Power-to-Liquid production, in the near term as well as the current HEFA pathway.

Pricing is a critical issue to help grow SAF production as it is critical to help attract investment. Investors and lenders need certainty in revenue and, along with offtakes, certainty in SAF prices is critical to de-risk future projects. 

We also discuss the correlation of emissions reduction and Carbon Intensity scores and pricing as SAF’s value can be tied to the emissions reductions. We also look at how factors such as anti dumping duties, tax incentives in the US and the introduction of mandates in 2025 could effect pricing formulations. 

The discussion concludes with a reflection on transparency and how important access to data is to get the clearest pricing picture possible. 

Check out this episode if you are interested in how SAF pricing works, the challenges it presents and critically why pricing is such an important component in growing the SAF Industry.

If you enjoyed this episode, check out our most recent discussion with Andrew Symes, OXCCU here: https://www.buzzsprout.com/2202964/episodes/15895179