#London #UK #Aviation Fuel #Argus Media #e-SAF

Argus Media Launches Revolutionary E-SAF Pricing Index

In a significant stride towards sustainability, Argus Media, a leader in energy and commodity price reporting, has launched the first calculated prices for e-SAF (electrolytic sustainable aviation fuel). This innovative pricing model aims to foster transparency in negotiations surrounding offtake agreements within the aviation fuel sector.

The Need for E-SAF

As the aviation industry confronts escalating pressures to reduce carbon emissions, reliance solely on biofuel-based sustainable aviation fuels (SAF) is recognized as insufficient. The primary feedstock for these biofuels, such as used cooking oil, is limited in availability. To truly decarbonize, there is a pressing necessity for e-SAF, produced directly from hydrogen and carbon dioxide.

With new mandates set to kick in starting from 2028 in the UK and 2030 in the European Union, the aviation industry faces substantial penalties for non-compliance. Alarmingly, the current readiness level of the industry is inadequate, with Argus tracking 70 proposed e-SAF plants across the UK and EU, none of which have yet reached a final investment decision (FID). Given that such facilities require three to four years to construct, it is crucial for FIDs to be secured promptly to meet the ambitious targets ahead.

Understanding E-SAF Production Costs

As e-SAF is a pioneering technology, it currently incurs significant costs compared to its counterparts — conventional jet fuel and bio-SAF. The recent calculations by Argus reveal that the production cost for e-SAF as of November 2025 is alarming, standing at 13 times that of conventional jet fuel and 3.5 times more than bio-SAF produced through the HEFA SPK pathway in Northwest Europe.

CEO of Argus Media, Adrian Binks, emphasized the critical need for long-term e-SAF offtake agreements to facilitate investment in production facilities. However, initial hesitance has been observed from potential buyers, who are reluctant to commit substantial sums due to uncertainties, resulting in a disconnection between supply and demand. This disconnect further hinders investment in the necessary production infrastructure.

Introduction of Weekly E-SAF Indexes

To bridge this gap, Argus has introduced weekly pricing indexes that compute the production cost of e-SAF in the Amsterdam-Rotterdam-Antwerp (ARA) region on both €/t and $/t bases. These prices are disclosed inclusive and exclusive of capital expenditure, thus providing a more comprehensive view of the cost landscape.

This new offering enhances Argus' SAF portfolio, consolidating existing benchmarks in North West Europe, Asia-Pacific, and the U.S. for HEFA-SPK bio-SAF while leveraging their expertise in biofuels, natural gas, and hydrogen pricing. This expansion aims to add valuable insights for stakeholders involved in the e-SAF market.

Please notice that major companies, trading firms, and governments worldwide rely on Argus for prudent decision-making, risk evaluation, and long-term strategic planning based on reliable data. Founded in 1970 and headquartered in London, Argus Media remains a trusted partner in the dynamic and ever-evolving energy landscape.

Conclusion

The launch of Argus' e-SAF pricing index marks a pivotal moment in the quest for sustainable aviation. It brings much-needed transparency and insight to the market, encouraging investments and aligning with global decarbonization mandates. As stakeholders prepare to navigate this transition, Argus' data and methodologies will undoubtedly serve as a guiding light in a challenging but rewarding journey towards a greener aviation future.