Leading commodity and energy price provider S&P Global Platts has launched new sustainable aviation fuel (SAF) and hydrotreated vegetable oil (HVO) price assessments in Southeast Asia, the company announced on 19 January.
The new Platts Southeast Asia SAF, Platts Southeast Asia HVO and UCO North Asia (used cooking oil) price assessments, followed the launch of Platts Northwest European SAF and HVO assessments in August 2020, and SAF values for the US West Coast in September 2020.
With Asia set to become a large producer of advanced biofuels, the company said the new assessments would enhance transparency in renewable fuel markets across the region.
"Southeast Asian governments are pursuing aggressive renewable fuels targets which are set to intensify in the future. Embracing advanced biofuels such as HVO and SAF will play an important role in helping nations achieve those goals. In addition, major airlines are already looking at sustainable aviation fuels on a voluntary basis to reduce their carbon footprint,” said Ian Dudden, S&P Global Platts global pricing director (metals and agriculture).
The new SAF and HVO valuations reflected a FOB Singapore price, and the launch followed consultation with producers, consumers, traders and others in the Asian, European and US oil and biofuel markets, the company said. The used cooking oil feedstock assessment for Asia reflected the region's position as a leading exporter.
Provided by Platts Analytics, the HVO assessment calculations, are based on existing Platts assessments and other fixed costs.
"HVO production for road transport across Asia is forecast to exceed 1.8M tonnes by 2025 and 2.6M tonnes by 2030, up from 930,000 tonnes annual production in 2020. Investment to expand infrastructure such as Neste's Singapore refinery, as well the launch of two HVO plants in Indonesia, will fuel the region's HVO production going forward,” said Patricia Luis-Manso, S&P Global Platts head of agriculture & biofuels analytics.