U.S. Energy Department Releases Liftoff Report for Sustainable Aviation Fuel

The U.S. Energy Department on Nov. 13 announced the release of a report discussing the near-term potential for sustainable aviation fuel, or SAF, to meaningfully decarbonize the aviation sector. The report, titled “Pathways to Commercial Liftoff: Sustainable Aviation Fuel,” is the latest in a series of reports assessing how the U.S. can achieve net-zero emissions by 2050.

The report highlights that currently announced domestic projects represent over three billion gallons of annual SAF production capacity by 2030, surpassing the U.S. SAF Grand Challenge target. This capacity correlates to over 10 percent of projected U.S. jet fuel demand, more than $44 billion of investment, and over 70,000 jobs across the value chain through 2030.

The report examines the commercial and technical readiness of a number of SAF production pathways and emphasizes measurable, actionable steps that both the private and public sector can undertake to position the U.S. as a global leader in SAF production by at least 2030. Moreover, the report outlines vital innovation, technological advancements and investment required to lower costs and further expand SAF production and therefore provide a pathway for a cleaner, more competitive aviation sector that will assist businesses and communities across the nation.

SAF is an alternative to petroleum jet fuel and is formed from agricultural and waste feedstock and is utilized in blends with petroleum jet fuel. Funding for SAF has risen due to federal tax credits, the U.S. Environmental Protection Agency’s Renewable Fuel Standard and state initiatives and tax incentives encouraging the use of SAF.

The SAF Grand Challenge is a comprehensive roadmap to produce three billion gallons of sustainable aviation fuel annually by 2030, and 35 billion gallons by 2050. The initiative aims to achieve a minimum of a 50 percent reduction in life cycle greenhouse gas emissions compared to conventional fuel and meet a goal of supplying sufficient SAF to meet 100 percent of aviation fuel demand by mid-century.

The liftoff reports provide a common basis of analysis and vital insights to direct private and public sector initiatives in scaling transformative technologies and fast tracking the U.S. clean energy transition. The series promotes alignment on market challenges, investment requirements and vital pathways for deploying sustainable solutions.

The report emphasizes that liftoff by 203 necessitates deployment of production technologies and feedstocks that are currently available. At the same time, investments in emerging SAF technologies are paramount to ensuring that 100 percent of jet fuel is sustainable by 2050.

The high cost of SAF, ranging from two to ten times that of fossil jet fuel, is the main barrier to scaling production, according to the report. Federal and state incentives are essential to make SAF more competitive, but price premiums have limited airlines’ voluntary offtake. The report also finds that long term off take agreements will establish demand certainty required to enhance financing terms and encourage investment across the SAF value chain. Involving third-party offtakers who pay for SAF’s carbon reduction benefits could boost adoption, but requires SAF inclusion in Scope 3 emissions standards.

In order for SAF to be rolled out successfully, the report highlights that a global effort is required, which includes alignment on carbon accounting, book and claim systems and feedstock traceability.