Cleaner-burning sustainable jet fuel costs two to four times more than fuel distilled from petroleum, said the newly formed Sustainable Aviation Fuel Coalition, which aims to ramp up production and bring down costs. Aviation accounts for 2 to 3 percent of carbon dioxide emissions worldwide.
The coalition, with 40 members from biofuel producers to airlines, went into operation on Monday, a day before the Treasury Department was expected to spell out how biofuels could qualify for SAF tax credits of up to $1.75 a gallon. Under the 2022 climate law, credits are available to fuels that produce half as many greenhouse gases as petroleum-based jet fuel.
The Biden administration has a goal of increasing production of sustainable aviation fuel (SAF) to 3 billion gallons annually by 2030. Only a trickle of SAF is produced at present. In January, sustainable fuels producer LanzaJet opened an ethanol-to-SAF refinery in southeastern Georgia.
Agriculture Secretary Tom Vilsack said in February that he expected that climate-smart agricultural practices would be a factor in access to the SAF credits.
The SAF Coalition said the cleaner-burning fuel “will enhance domestic energy security, create new markets for American farmers, reduce aviation emissions, and drive next-generation technology development.”