The U.S. Department of Energy (DOE) has released a new report, "Pathways to Commercial Liftoff: Sustainable Aviation Fuel," which highlights the potential for sustainable aviation fuel (SAF) to reduce carbon emissions in the aviation sector. The report evaluates various SAF production methods and suggests steps for both public and private sectors to make the United States a leader in SAF production by 2030.
U.S. Secretary of Energy Jennifer M. Granholm stated, “With the aviation sector growing each year, there is no better time to invest in solutions that are both technologically and commercially ready today.” She emphasized that the report outlines necessary innovations and investments to lower costs and increase SAF production, benefiting communities and businesses nationwide.
The DOE's Pathways to Commercial Liftoff series aims to guide efforts in scaling transformative technologies as part of the nation's clean energy transition. It addresses market challenges, investment needs, and pathways for deploying sustainable solutions like SAF at scale.
Key findings from the report indicate that announced projects could achieve over three billion gallons of annual domestic SAF production capacity by 2030, exceeding the U.S. SAF Grand Challenge target. This capacity would meet over 10% of projected U.S. jet fuel demand, involve $44 billion in investment, and create over 70,000 jobs across the SAF value chain through 2030.
However, cost remains a significant barrier to scaling up SAF. Currently, SAF costs two to ten times more than fossil jet fuel depending on feedstock and conversion technology used. Federal and state incentives are crucial for making SAF cost-competitive with fossil fuels but sustained price premiums have limited airlines' voluntary purchases.
Long-term agreements will be essential for establishing demand certainty needed for financing terms improvement and stimulating investment across the value chain. Airlines can extend terms or increase volumes by involving third-party buyers willing to pay for environmental benefits such as carbon abatement from this low-carbon fuel.
International policy coordination will also be necessary for successful SAF liftoff by aligning on carbon accounting, feedstock traceability, and book-and-claim systems.
In October 2024, DOE’s Loan Programs Office announced two conditional commitments aimed at scaling domestic SAF production: a $1.44 billion loan guarantee to Montana Renewables LLC for expanding a renewable fuels facility in Great Falls using vegetable oils; fats; greases; renewable diesel; naphtha; while another $1.46 billion loan guarantee was made towards Gevo Net-Zero 1 LLC’s large-scale corn starch-to-jet fuel facility located Lake Preston South Dakota sourcing low-cost field corn employing carbon capture sequestration renewable power lowering emissions further complementing these initiatives outlined within this recent publication developed extensive stakeholder engagement system modeling soliciting input industry forums requests information regular interaction context authorities direct public input submitted via email liftoff@hq.doe.gov additional reports added coming months more information available here November 21st webinar featuring senior leaders exploring “Pathways Commercial Liftoff Sustainable Aviation Fuel” registration link provided
