Platts updates specifications for upcoming launch, daily USGC ETJ cost-based SAF calculated assessments from April 24

S&P Global Platts has updated specifications for upcoming launch, USGC, ETJ cost-based SAF calculated assessments, effective April 24.

Platts has received feedback that the announced reference carbon intensity is too low and would not represent the true CI of ETJ SAF.

Therefore, Platts will update the reference Carbon Intensity for the ETJ cost-based SAF to 45 gCO2e/MMBtu (42.652 gCO2/MJ).

Previously, the cost-based considered a Carbon intensity of 33 kgCO2e/MMBtu (31.278 gCO2/MJ).

Platts will calculate the credit by multiplying the lifecycle greenhouse gas emissions reduction percentage by the maximum credit price, $1.75/gal.

Platts will calculate lifecycle GHG emissions reduction percentage as a fraction, the numerator of which will be the maximum carbon intensity -- 50 kgCO2/MMBTU -- minus the SAF CI of 45 kgCO2/MMBtu, and the denominator of which will be the maximum carbon intensity.

The credit will be rounded to the nearest hundredth cent.

(50 - 45)/50 x 175 cents/gal = 17.5 cents/gal

Therefore, the total SAF tax credit Platts will use in its USGC ETJ SAF without credits prices is 17.5 cents/gal.

The launch of the new values was first proposed in a subscriber note published March 6, available here: https://www.spglobal.com/commodity-insights/en/pricing-benchmarks/our-methodology/subscriber-notes/030625-platts-proposes-to-launch-daily-usgc-etj-cost-based-saf-calculated-assessments(opens in a new tab)

A decision to launch the assessments was communicated on March 21 in a subscriber note available here: https://www.spglobal.com/commodity-insights/en/pricing-benchmarks/our-methodology/subscriber-notes/032125-platts-to-launch-daily-usgc-etj-cost-based-saf-calculated-assessments-from-april-24(opens in a new tab)

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