Argus Releases Sustainable Aviation Fuel Evaluation Tool

Global energy and commodity price data provider Argus Media has introduced sustainable aviation fuel (SAF) emissions reduction indexes (ERIs), which enable aviation stakeholders to compare SAF economics with compliance and voluntary carbon market obligations.

The assessments and accompanying analytics provide an independent reference for SAF users to evaluate its regional competitiveness, aviation decarbonization costs, and the allocation of Scope 3 emissions reductions.

The ERIs normalize fuel prices on an energy equivalent basis using regional life cycle emissions assumptions and are published in U.S. dollars per tonne of carbon dioxide equivalent. Published daily, the assessments also calculate U.S. dollars per tonne of fuel to provide transparency into the underlying SAF pricing delta and support comparison with Argus’ physical SAF benchmark prices.

Additionally, the company has rolled out an Excel-based calculator tool that uses the published ERIs as a reference point. It allows subscribers to create company-specific views of procurement, compliance, and decarbonization strategies.

“Our new ERI assessments help aviation industry market participants understand more clearly the relationships between fuel pricing and steadily increasing mandated and voluntary carbon markets obligations,” said Argus Media chairman and CEO Adrian Binks. “Together with the calculator, they offer a transparent and independent means of establishing the cost of emissions reduction and help participants decide how to allocate SAF costs and environmental attributes between buyers and sellers, including Scope 3 emissions reduction agreements.”