New legislation aiming to incentivise SAF production in the US

The Sustainable Aviation Fuel Act legislation to incentivise the production of sustainable aviation fuel (SAF) and help the aviation sector reduce carbon emissions has been introduced in the US.
The bill would create a new blender’s tax credit for SAF, linked to carbon reductions, as well as an Investment Tax Credit to help finance new SAF facilities and infrastructure.
It would also authorise $1 billion (€0.83 billion) in federal funding for US projects that produce, transport, blend, or store SAF.
Additionally it aims to provide $175 million (€145 billion) in research funding to push the limits of existing SAF technology to try to lower SAF carbon emissions even more.
It would also require the EPA to establish an aviation-only Low Carbon Fuel Standard (LCFS) similar to California’s successful transportation-wide LCFS.
Since 2011, more than 200,000 flights have used sustainable aviation fuel (SAF) in the US. Aviation emissions are projected to triple by 2050.
SAF is a drop-in fuel, which is an interchangeable substitute for fossil jet fuel up to a certain blending percentage.
The market for renewable aviation fuel (RAF) is expected to witness a combined annual growth rate (CAGR) of more than 56.05% from 2020 to 2025.
Government policies have been one of the major factors in driving the market, according to research by Reportlinker.

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