SAF Is Too Expensive - Until It Isn’t!

The recent significant step up in fossil jet prices, as a result of the conflict in the Middle East, has brought SAF pricing back into focus for investors, developers, and governments. The mainstream media has rightly published regular updates on absolute fossil jet prices in Europe more than doubling since the start of the year. SAF prices have also increased, but not to the same extent as fossil jet, and primarily only as a result of increased freight costs. The primary drivers of SAF production costs have not materially changed.

As a result, the SAF price premium versus the price of fossil jet has narrowed significantly. Yes, SAF is still more expensive than fossil jet, but the reduction in premium and associated relatively low level of SAF price volatility are in stark contrast to the pricing dynamics seen last year. This is helpful context for stakeholders considering SAF investments that rely on long-term price stability.

At Green Star BCS, we specialize in the development and technical assessment of SAF production plants. With decades of experience behind us, we can help bring clarity to a SAF cost of production outlook. If you are seeking support with technical assessment or validation of a SAF flowsheets and associated cost of production, please don’t hesitate to contact us.