LITTLE to no ethanol will qualify for US sustainable aviation fuel (SAF) subsidies under a new pilot programme by President Joe Biden's administration, which recently tightened climate requirements, reports Reuters.
This development could negatively impact the biofuel industry, which views SAF as ethanol's most promising growth opportunity, especially as electric cars reduce its demand as a gasoline additive.
It could also impede Biden's goal of producing 30 billion gallons of SAF by 2030, despite his earlier promise that 95 per cent of SAF - a biofuel that can be made from oils, waste, or grains-would come from farmers.
The specifics of how little ethanol will qualify for the subsidies under the pilot programme and the last-minute increase in requirements have not been previously reported.
Central to the issue is a US$1.25/gallon production tax credit included in the 2022 Inflation Reduction Act, designated for SAF that achieves a 50 per cent reduction in lifecycle greenhouse gas emissions compared to conventional jet fuel.
SeaNews Turkey
This development could negatively impact the biofuel industry, which views SAF as ethanol's most promising growth opportunity, especially as electric cars reduce its demand as a gasoline additive.
It could also impede Biden's goal of producing 30 billion gallons of SAF by 2030, despite his earlier promise that 95 per cent of SAF - a biofuel that can be made from oils, waste, or grains-would come from farmers.
The specifics of how little ethanol will qualify for the subsidies under the pilot programme and the last-minute increase in requirements have not been previously reported.
Central to the issue is a US$1.25/gallon production tax credit included in the 2022 Inflation Reduction Act, designated for SAF that achieves a 50 per cent reduction in lifecycle greenhouse gas emissions compared to conventional jet fuel.
SeaNews Turkey
