The higher cost of sustainable aviation fuel in comparison to petroleum-based jet fuel is still the biggest barrier to scaling the clean fuel industry, according to the latest Pathways to Commercial Liftoff: Sustainable Aviation Fuel, a report from the Department of Energy.
The report analyzes the industry and suggests actions the public and private sector can take to elevate the United States’ leadership in SAF production.
DOE found that SAF currently costs two to ten times more than traditional jet fuel. This has created short-term and low-volume voluntary SAF demand. Airlines can offset these costs by passing some of them to passengers or through corporations. However, the lack of universal acceptance for book-and-claim systems is another barrier. Under such a system, companies can purchase the environmental benefits associated with SAF without paying for the fuel itself.
Cut through the clutter! We deliver the news you need to stay informed about farm, food and rural issues. Sign up for a FREE month of Agri-Pulse here.
Currently only four commercial SAF projects are operating. The report suggests production is needed at 8-12 plants that average 100 million gallons of SAF per year. It recommends scaling and deploying existing SAF technologies, and investing in new feedstocks to meet targets.
To improve demand certainty and encourage greater investment in SAF, the report suggests the industry shift toward 10-year off-take agreements rather than short-term contracts, and move toward a book-and-claim system.
For more news, go to www.Agri-Pulse.com.
.jpg){kind=link}