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Chinese SAF exports to UK surprise markets

in a market dominated by big players like NESTE, it would appear the Chinese exporters of SAF are making a name for themselves particularly in the UK. SAF use is still relatively small as mandate in EU has not been fully triggered while in the US 40B rule (2023) of 1.25 c/gal is already in place to encourage SAF production but few producers find economics worthwhile in current market preferring to produce Renewable diesel. The EU mandate starting Jan 1, 2025 will require all jet fuel sold in Europe to blended with SAF. SAF can be producted from many different sources of vegoil, waste oils and even Ethanol. The airlines only want SAF made from UCO as GHG savings is significantly higher and it also increases airlines ability to sell scope 3 attributes to recoup the high cost of the SAF which is not subsidized in EU. A trade of SAF on an electronic trade platform did occur last month at $1320/mt over ICE gasoil putting the flat price at nearly @$2100/mt.

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