Argus launches 1st UK SAF certificate prices

Global energy and commodity price reporting agency Argus announced Dec. 1 that it has launched the world’s first assessed price for U.K. sustainable aviation fuel (SAF) certificates, expanding its coverage of the northwest European SAF market.

The new prices will help market participants optimize their compliance with the U.K. SAF mandate by enabling them to compare the cost of purchasing SAF certificates, blending physical biobased SAF—produced from hydrotreated esters and fatty acids (HEFA) feedstock—and paying “buy-out” costs in case of noncompliance.

“As SAF mandates ramp up, companies will increasingly need reliable prices not just for the fuel itself but also for certificates,” said Adrian Binks, Argus Media chairman and CEO.

“We have worked closely with the industry to develop this new price and we are confident that it will bring much-needed transparency as participants across the aviation value chain work to comply with tightening carbon-cutting mandates,” Binks added.

The new assessment will track the price of certificates acceptable for meeting the U.K. SAF mandate and based on manufacture using a relevant HEFA feedstock.

These tradeable certificates are generated by supplying eligible SAF in the U.K. and are then redeemed by obligated parties to comply with the mandate’s rules.

The mandate allows companies that exceed their own quota to sell their excess certificates to others needing to comply.

From 2025, the U.K. requires jet-fuel suppliers to blend 2 percent SAF into their domestic aviation fuel deliveries to curb emissions.

The mandate increases year by year, rising to 10 percent by 2030 and to 22 percent by 2040.

Transparent pricing for the U.K. certificates market will therefore become increasingly valuable.

This first U.K. SAF certificate price complements Argus’ existing suite of assessments for tradeable biofuel tickets for road-transport mandates in the U.K. and in several EU countries.

Argus also provides a range of physical SAF prices in northwest Europe, including SAF produced using the HEFA pathway and the first-ever modeled production costs for electrolytic SAF (eSAF).