Argus launches new price as Europe moves towards sustainable aviation fuel

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Sep 21, 2020, 04:48 ET

LONDON, Sept. 21, 2020 /PRNewswire/ -- Legislation in Europe is pushing airlines to use more environmentally-friendly fuels, creating a need for transparent pricing in this emerging market. Global energy and commodity price reporting agency Argus has launched prices for sustainable aviation fuel (SAF) in Europe.

SAF is made from waste products, such as used cooking oil, and has a lower carbon footprint than petroleum-based jet fuel. Pressure on airlines to reduce the carbon footprint of their operations continues despite the economic uncertainty the sector has faced since the Covid-19 pandemic shattered passenger demand. Some airline bailouts by governments, notably those of Air France and Scandinavian carrier SAS, have been explicitly linked to requirements to reduce carbon emissions.

Before the pandemic, SAF prices were typically between three and five times higher than those for conventional petroleum diesel. But the collapse in air travel has seen petroleum-based jet fuel prices plummet worldwide, and has increased the SAF premium. In northwest Europe, Argus assessed conventional jet fuel at $329,25/t on 18 September, more than six times lower than SAF, which was valued at $2,124.47/t.

The new prices will be published on a weekly basis in the Argus Biofuels and Argus Jet Fuel reports.

As the aviation sector addresses increasingly stringent decarbonisation goals, airlines and their fuel suppliers are looking for transparent pricing for SAF, as well as an objective, representative index that they can use for physical contracts and for risk management. Argus' deep understanding of emerging SAF markets and extensive experience in covering renewable fuels globally will satisfy these needs.

Argus Media chairman and chief executive Adrian Binks said: "Argus has been a forerunner in renewable fuels market reporting globally. We continue to work closely with the industry to develop appropriate pricing and hedging solutions as the industry seeks the best way to value this product."

Argus contact information

London: Seana Lanigan
+44 20 7780 4200
Email Seana

Singapore: Tomoko Hashimoto
+65 6496 9960
Email Tomoko

Moscow: Alexey Komarov
+7 495 933 75 71
Email Alexey

Houston: Karen Johnson
+1 281 732 9489
Email Karen

About Argus Media

Argus is an independent media organisation with more than 1,000 staff. It is headquartered in London and has 25 offices in the world's principal commodity trading and production centres. Argus produces price assessments and analysis of international energy and other commodity markets, and offers bespoke consulting services and industry-leading conferences.

Companies in 140 countries around the world use Argus data to index physical trade and as benchmarks in financial derivative markets as well as for analysis and planning purposes.

Argus was founded in 1970 and is a privately held UK-registered company. It is owned by employee shareholders, global growth equity firm General Atlantic and Hg, the specialist software and technology services investor.

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SOURCE Argus Media