General Index and ATOBA Energy Forge Groundbreaking SAF Pricing Partnership
- 21-May-2025 6:45 PM
- Journalist: Emilia Jackson
General Index and ATOBA Energy today announced a partnership aimed at fostering investment and accelerating the supply of advanced Sustainable Aviation Fuel (SAF) through the creation of innovative, technology-specific energy benchmarks. This collaboration promises to bring much-needed transparency and stability to a critical sector striving for aviation's ambitious net-zero by 2050 goal.
For decades, the aviation industry has navigated price risks in traditional fossil jet fuel markets using established price reporting services. However, the unique complexities of SAF production demand a fundamentally new approach. Unlike conventional fuels, SAF can be derived from a diverse array of certified technologies, each possessing distinct feedstocks, operational costs, CO2 reduction capabilities, and scalability. The partners emphasize that a "one-size-fits-all" SAF index is insufficient for this intricate and evolving market.
ATOBA Energy, recognizing the immediate need to unlock investment and build confidence in long-term offtake agreements for new SAF production facilities, has spearheaded this initiative. A key enabler, they contend, is the establishment of transparent and equitable SAF price indexes. Developed by General Index, these new indexes will be meticulously designed to reflect the unique cost profiles of various SAF technologies. These granular indexes will then be aggregated to form broader benchmarks that align with existing regulatory frameworks, regional market nuances, and overall industry needs.
Neil Bradford, CEO & Founder of General Index, underscored the criticality of this endeavor, stating, "Creating transparent and technology-specific SAF price benchmarks is critical to scaling sustainable aviation fuel markets." He highlighted General Index's existing role as a benchmark partner to the European Commission for the official 2024 Aviation Fuels Reference Prices for ReFuelEU Aviation, emphasizing that this partnership with ATOBA Energy will "help build the foundational infrastructure needed to attract investment, support offtake agreements, and accelerate the aviation industry鈥檚 transition to net zero.鈥
Arnaud Namer, CEO & Co-Founder of ATOBA Energy, echoed this sentiment, emphasizing that "Unlocking investment in sustainable aviation fuel starts with transparency, market confidence, and trusted pricing tools." He expressed pride in partnering with General Index to introduce a "new generation of SAF price benchmarks tailored to the real cost structures of emerging SAF technologies." Namer believes these benchmarks are essential for ensuring SAF remains competitively priced for airlines, an advantage ATOBA Energy aims to deliver through its diversified portfolio of best-in-class SAF producers and long-term offtake aggregation strategy.
The traditional financial model for SAF has been a significant hurdle. Producers require substantial upfront investments but struggle to secure funding without guaranteed long-term purchase contracts. Conversely, airlines, facing decarbonization mandates, hesitate to commit to purchasing from unproven technologies or volatile pricing structures.