Excellent writeup, thanks for sharing your work on Base. What’s so eye opening to me is the cost to offset a tonne of emissions via SAF relative to the cost to offset a tonne of emissions with a CA CORSIA credit. If the ultimate goal is to offset emissions then this analysis reveals that SAF costs around $300 to offset a tonne of emissions where a CA CORSIA credit is “only” $20-$40 at the moment. One has to imagine that airlines will do that analysis and choose to offset via CORSIA credits up until a price around $100 or so. Crazy to think about.
So true. The supply/demand fundamentals are so drastic that it makes you wonder if someone along the value chain here is going to try to change the rules.
Excellent writeup, thanks for sharing your work on Base. What’s so eye opening to me is the cost to offset a tonne of emissions via SAF relative to the cost to offset a tonne of emissions with a CA CORSIA credit. If the ultimate goal is to offset emissions then this analysis reveals that SAF costs around $300 to offset a tonne of emissions where a CA CORSIA credit is “only” $20-$40 at the moment. One has to imagine that airlines will do that analysis and choose to offset via CORSIA credits up until a price around $100 or so. Crazy to think about.
So true. The supply/demand fundamentals are so drastic that it makes you wonder if someone along the value chain here is going to try to change the rules.