SAF prices maintain northward trajectory

Sustainable aviation fuel (SAF) prices continue to climb, reaching two-year highs in Europe  supported by firm mandate demand.

Neat sustainable aviation fuel (SAF) prices hit $2,950.25/MT in Europe on 14 November, according to price data from General Index. The SAF Neat HEFA NWE FOB Barge price was up $32.25/MT compared to the previous week. It is the highest since 27 November 2023 and edges the market closer to the key $3,000/MT milestone. Suppliers have less than six weeks to ensure they meet the 2% blending requirements in the EU and UK.

Neat SAF prices have grown rapidly during the last six months as demand for the green molecules grew exponentially as more airlines seek to blend SAF into their fuel mix following the mandates. The market low this year was $1,740/MT recorded back in March.

The premium for neat SAF over the conventional jet fuel rose to $2,151.25/MT.

From a production point of view, General Index calculated the HEFA cost of production for a Max SAF scenario (excluding margin) at  $1,683/MT – implying a theoretical producer margin of more than $1,267/MT  Feedstock remains the top cost contributor, accounting for 76.34% of the total cost, while hydrogen cost ratio stayed relatively flat at 5.94%. UCO prices in Europe and Asia have remained well supported.

*Note: This is the first of our weekly price reviews, developed in partnership with General Index. The data for each review is sourced from the last working day of the previous week.