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THE US biden administration seeks to spur the growth of sustainable jet fuel (SAF), with a system of tax credits for producers,’ reports the Washington Post.
Aviation fuels made out of crops will help decarbonise the commercial airline industry, administration officials said as it unveiled the incentives, which were authorised in the Inflation Reduction Act.
‘Today’s announcement is an important steppingstone as it acknowledges the important role farmers can play in lowering greenhouse gas emissions and begins to reward them through that contribution in the production of new fuels,’ said Agriculture Secretary Tom Vilsack.
‘This is a great beginning as we develop new markets for sustainable aviation fuel that use home grown agricultural crops produced using climate smart agricultural practices,’ Mr Vilsack said.
Under the programme, producers will be eligible for a tax credits for sustainable aviation fuel (SAF) that achieves at least a 50 per cent reduction of greenhouse gas emissions when compared with petroleum-based jet fuel.
SAF that achieves a greenhouse gas emissions reduction of 50 per cent is eligible for a US$1.25 credit per gallon amount, and SAF that achieves an emission reduction of more than 50 percent is eligible for an additional one cent per gallon for each percentage point the reduction exceeds 50 percent – for a maximum per gallon credit of $1.75.
John Podesta, senior climate advisor, said the US commercial airline industry consumes about 10 per cent of all transportation energy and produces about two per cent of American’s carbon pollution.
While seen as ‘hard to decarbonise,’ Mr Podesta said the administration views it as a ‘must decarbonise sector. SAF is a key to achieving net zero aviation.’
As part of the updated guidance, the SAF Interagency Working Group also announced an update to a model that provides additional methodology for SAF producers to determine the life cycle greenhouse gas emissions rate of the production of jet-fuel crops.
Some environmental groups and scientists have raised concerns about the administration’s plan because farmland being used to grow food could be displaced by crops used for jet-fuel production.
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