Sustainable Aviation Fuel (SAF)

Sustainable Aviation Fuel is a drop-in replacement for conventional jet fuel, produced from waste oils (HEFA pathway), municipal solid waste, or power-to-liquid synthesis. SAF reduces lifecycle carbon emissions by up to 80%. ICAO's CORSIA scheme and EU ReFuelEU mandates are driving adoption.

HEFA (Hydroprocessed Esters)FT-SPK (Fischer-Tropsch)ATJ (Alcohol-to-Jet)ASTM D7566 CertifiedDAPFOBCIF
Quick Facts

Sustainable Aviation Fuel (SAF) at a Glance

Common Origins
United StatesFinlandSingaporeNetherlandsUnited Arab Emirates
Common Destinations
European UnionUnited StatesJapanSingaporeUnited Kingdom
Grades & Specifications
HEFA (Hydroprocessed Esters)FT-SPK (Fischer-Tropsch)ATJ (Alcohol-to-Jet)ASTM D7566 Certified
INCOTERMS
DAPFOBCIF
Unit of Measure
Metric Tons
Price Drivers

What Moves Sustainable Aviation Fuel (SAF) Pricing

SAF prices reference the conventional Jet A-1 benchmark plus a 'green premium' typically $1,000-2,500/tonne. The premium narrows in waste-feedstock production (used cooking oil HEFA) and widens for advanced pathways (alcohol-to-jet, power-to-liquid). EU ReFuelEU mandate (2% in 2025, 6% in 2030, 70% in 2050) and US IRA 45Z/40B credits structurally support pricing. Feedstock economics — UCO (used cooking oil), tallow, soybean oil — drive HEFA pathway margins.

Contract Structure

How Sustainable Aviation Fuel (SAF) Cargoes Are Priced and Settled

SAF supply contracts run 5-10 years with volume escalation clauses. Pricing structures: fixed-premium-over-Jet, formula-driven (Jet + green credit value), or floating against newly emerging SAF benchmarks. Mass-balance accounting via ISCC EU and CORSIA-eligible certification is universal.

Quality & Disputes

Sustainable Aviation Fuel (SAF) Specifications and Dispute Practice

Specs follow ASTM D7566 (Annex A1 HEFA, A2 FT, A3 SIP, A4 ATJ, A5 catalytic hydrothermolysis, A6 HEFA-based). 50% blend cap with conventional jet for most pathways. Disputes turn on certification chain validity (ISCC EU, RSB), GHG savings calculation method, and feedstock origin documentation under EUDR.

Trade Flows

Where Sustainable Aviation Fuel (SAF) Comes From and Where It Goes

Top producers: US (World Energy, Neste at LA refinery, growing Phillips 66 capacity), EU (Neste Rotterdam — the largest single SAF facility globally, TotalEnergies, Repsol), Singapore (Neste expansion). Top buyers: airlines under European mandates (Lufthansa Group, Air France-KLM, IAG), with US carriers ramping under voluntary corporate commitments and IRA-driven economics.

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