As the U.S. pursues a green energy transition, some of the most polluting industries are feeling the pressure to decarbonize. The aviation sector continues to rely heavily on fossil fuels to power flights, making it a hard-to-abate industry. As the sector strives to reduce and offset emissions, an increasing number of people are taking flights worldwide, with emissions set to rise significantly in the coming years. One way in which the aviation industry is decarbonizing is by using sustainable aviation fuel (SAF), which can be mixed with conventional fuels in aircraft. The use of SAF is expected to increase in the coming years in line with the increase in SAF production capacity in the U.S. and stricter regulations on the fuel mix in commercial flights.
What is SAF?
Sustainable aviation fuel, known as SAF, is a synthetic fuel that is produced using non-petroleum feedstocks. It is increasingly being used to reduce emissions from air transportation. It can be blended with fossil fuels, such as diesel, at levels of between 10% and 50%, depending on the feedstock used to produce the SAF.
Feedstocks for SAF production include corn grain, oil seeds, algae, other fats, oils, and greases, agricultural residues, forestry residues, wood mill waste, municipal solid waste streams, wet wastes – manures, wastewater treatment sludge, and dedicated energy crops. The Department of Energy (DoE) predicts that one billion dry tons of biomass can be collected sustainably each year in the U.S., which could produce between 50 and 60 billion gallons of low-carbon biofuels.
SAF has grown in popularity as governments worldwide increasingly put pressure on airlines to reduce their emissions. Globally, the aviation industry accounts for 2% of carbon emissions and 12% of all emissions from transport. The U.S. consumed approximately 1.6 million bpd of petroleum jet fuel in 2023, and the Energy Information Administration’s 2023 Annual Energy Outlook projects that U.S. jet fuel demand in 2050 will exceed 2 million bpd.
To date, the International Civil Aviation Organization (OCAO) has recorded the use of SAF in over 360,000 commercial flights, across 46 different airports, primarily in the U.S. and Europe.
The ICAO introduced a Carbon Offsetting and Reduction Scheme for International Aviation in 2020, which encourages airlines to decarbonize and ultimately achieve net-zero carbon emissions across the sector by 2050. As aviation is a hard-to-abate industry, experts believe that SAF is the best option to support decarbonization.
Growing SAF Use in the U.S.
In 2021, the U.S. DoE, Department of Transport (DoT), and the U.S. Department of Agriculture (USDA) introduced the Sustainable Aviation Fuel Grand Challenge, bringing together several federal agencies to expand the domestic consumption of SAF to 3 billion gallons in 2030 and 35 billion gallons in 2050. The initiative is aimed at reducing the cost, enhancing sustainability, and expanding the production and use of SAF. Some of the green fuels being produced include renewable heating oil, renewable naphtha, renewable propane, renewable gasoline, and other emerging biofuels, which are in various stages of development and market.
The DoE, DoT, and USDA published the SAF Grand Challenge Roadmap: Flight Plan for Sustainable Aviation Fuel to outline a whole-of-government approach to work with and support industry to meet the goals of the SAF Grand Challenge.
In line with Biden administration aims for a green energy transition and to increase U.S. manufacturing activities, the domestic production capacity of SAF is expected to increase in the coming decades. The U.S. production capacity of SAF is forecast to increase from around 2,000 barrels per day (bpd) in 2020 to 30,000 bpd in 2024, based on the project pipeline.
The start of operations at Phillips 66’s Rodeo Renewed project could add around 10,000 bpd of SAF this year, while Diamond Green Diesel’s Port Arthur SAF project could provide another 15,000 bpd of SAF.
New SAF Initiatives
In August, as part of President Biden’s Investing in America Agenda, the Federal Aviation Administration (FAA) announced $291 million in investment for projects supporting net-zero goals, with funds coming from the Inflation Reduction Act. The FAA will dedicate $244.5 million to support 22 projects that produce, transport, blend or store SAF, as well as for scoping studies related to SAF infrastructure needs.
Laurence Wildgoose, the FAA Assistant Administrator for Policy, International Affairs, and Environment, stated, “The projects are instrumental in advancing our environmental and economic sustainability goals by facilitating the development and implementation of sustainable aviation fuels.” Wildgoose added, “All grant recipients are based in the U.S. and are working towards putting the aviation sector on a path toward achieving net-zero greenhouse gas emissions as outlined in the U.S. Aviation Climate Action Plan.”
The U.S. production capacity of SAF is expanding rapidly in line with government aims to decarbonize the aviation sector with domestically produced clean fuels. The Biden administration has put significant pressure on airlines to increase the proportion of SAF they are using in commercial flights and to pursue greater decarbonization efforts. Meanwhile, the rapid speed of deployment of SAF projects in the U.S. has been supported by favorable national policies and a joined-up effort between government bodies and industry.
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