After Dave Ripplinger, a bioproducts and bioenergy economist at North Dakota State University, described the new tax credits for sustainable aviation fuel (SAF) as a “watershed moment for the industry,” he received numerous inquiries from farmers. In response, he is sharing the latest updates, reported agupdate.com
Ripplinger noted that recent developments regarding SAF now make ethanol and soy-based biofuels eligible for tax credits under the Inflation Reduction Act (IRA).
“The Energy Information Administration has released projections for the growth in domestic SAF production capacity for 2024,” Ripplinger explained. “This represents a substantial increase from 2,000 to 30,000 barrels per day. To put it in gallons, that’s an increase from 30 million gallons per year to 460 million gallons per year, though this still represents less than 2 percent of jet fuel consumption.”
He emphasized that these figures represent capacity, not actual production.
Ripplinger believes that production is likely to approach these levels.
“In relation to U.S. jet fuel consumption, this is a significant amount,” he said. “When compared to biodiesel or corn ethanol production, this represents a notable advancement for a relatively young industry.”
The anticipated growth in SAF production will come from hydrotreating, a process similar to that used for renewable diesel. Hydrotreated vegetable oil (HVO) can be derived from vegetable oil, fats, or grease, requiring a large amount of feedstock.
“The expected production capacity will demand 3.6 billion pounds of feedstock, equivalent to about 300 million bushels of soybeans, or approximately 1.5 times the annual soybean crop of North Dakota,” Ripplinger stated.
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