Fastmarkets, a leading cross-commodity price-reporting agency, has taken a significant step towards a greener aviation industry by launching its first sustainable aviation fuel (SAF) prices for the North American market. This initiative leverages Fastmarkets’ deep understanding of feedstock markets and associated carbon credits and subsidies to bring transparency and stability to the rapidly growing SAF sector.
SAF is a crucial component of the global decarbonization effort. Investment in research and development, along with refining facilities, from various market players including traditional oil and gas companies, renewable refiners, airline manufacturers, airline operators, financial institutions, and government agencies, has made SAF commercially viable. It is now being actively used as a replacement for traditional jet fuel.
The aviation industry is seeing a strong rebound in commercial air traffic after the Covid-19 pandemic. The future of decarbonization initiatives for the airline industry hinges on the successful adoption and widespread use of SAF globally. The European Union will implement its first SAF mandate on January 1, 2025, while the US is set to introduce new low-carbon tax credits to incentivize SAF production. These regulations will drive a significant increase in SAF output, with the US aiming for 35 billion gallons per year by 2050 and the EU targeting a 70% SAF use mandate for all EU-originating flights.
In the initial stages of this push, demand for SAF is likely to outpace supply, placing sellers in a strong position while buyers face a fragmented supply landscape due to competing production technologies. Fastmarkets’ unique market position allows them to analyze all underlying factors, including feedstocks, credits, and fundamental data, creating the foundation for a transparent pricing mechanism that assists market participants in making informed decisions, both short-term and long-term.
Fastmarkets’ SAF intelligence offering is the most comprehensive and reliable source of information for the market. “The launch of our sustainable aviation fuel price marks a significant step towards a greener and more sustainable future for the aviation industry,” said Tore Alden, principal analyst at Fastmarkets. “By providing transparent, competitive pricing for SAF, we are not only enhancing market stability and investor confidence but also accelerating the global transition to more environmentally friendly fuel sources.”
Fastmarkets is poised to become the leading authority in SAF pricing, establishing a new standard for market information and transparency within the renewable energy and low carbon intensity fuels sector. “This initiative underscores Fastmarkets’ commitment to driving positive change by setting new standards in market information and transparency within the renewable energy sector,” said Tim Worledge, editorial director of agriculture at Fastmarkets.
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About Fastmarkets
Fastmarkets is a leading PRA (Price Reporting Agency) and information provider for the agriculture, forest products, metals, and energy transition commodities markets. Fastmarkets serves its customers with commodity benchmark prices and assessments, forecasts, analytics, insights, news, and events. Its data is essential for customers seeking to understand and predict dynamic, sometimes opaque markets, enabling trading and risk management. Fastmarkets is a global business with a history dating back to 1865 and is built on trust and deep market expertise. It has over 650 employees located across several global locations, including the UK, US, China, Singapore, Brazil, Bulgaria, Belgium, Ukraine, and Finland. Fastmarkets is a privately held UK-registered company owned by its shareholders and Astorg, a European private equity firm.
