The push for sustainable aviation fuels (SAF) has gained significant momentum under President Biden’s administration. Biden’s latest call to action focuses on tax incentives as a critical mechanism to drive the development and adoption of SAF across the aviation sector.
Renewed Focus on Sustainable Aviation Fuel
President Biden has reiterated the importance of tax incentives to promote sustainable aviation fuel, or SAF, underscoring its role in reducing carbon emissions within the aviation industry. This call comes as part of a broader strategy to achieve net zero carbon emissions by 2050, a key target set for the sector.
In a recent address, Biden emphasized the transformative potential of technology over the next decade. He stated, ‘Your children are going to see more change in the next 10 years than we’ve seen in the last 40 years. That’s how rapidly technology is changing.’ This highlights the administration’s belief in the pivotal role of SAF in the technological transformation of aviation.
Challenges Facing SAF Adoption
Despite the push for SAF, the path to widespread adoption is fraught with challenges. A history of unmet promises in the aviation sector casts a shadow over the potential of SAF. United Airlines, for example, invested in Fulcrum Bioenergy in 2015 with an expectation to receive supplies by 2017, yet these supplies have not materialized even as of 2021.
This example illustrates the logistical and production challenges that plague the SAF supply chain. Notably, International Air Transport Association reported that only 26 million gallons of SAF were produced globally in 2021, a mere fraction of the pre-pandemic jet fuel demand. Therefore, boosting production remains a major hurdle.
International Perspectives and Efforts
European and South American airlines are also advocating for governmental support for SAF. The CEO of International Airlines Group expressed optimism, suggesting that with supportive policies, up to 30 SAF plants could be operational throughout Europe by the decade’s end.
In South America, Latam Airlines called for a cooperative effort between government bodies and private industry to spearhead SAF production. This collaborative approach is deemed essential for positioning the region as a frontrunner in SAF advancements.
These international efforts signify a global awareness and movement towards sustainable aviation, influenced by diverse regional dynamics. However, each region faces unique challenges that require tailored strategies to effectively implement SAF solutions.
The Role of Government Policy
A crucial aspect of SAF’s future is its legislative journey within the U.S. The Sustainable Skies Act introduced by Representative Brad Schneider proposes a tax credit of up to $2 per gallon for SAF. However, despite bipartisan support, the legislation remains stalled in Congress.
The potential for the act to be attached to a larger legislative package could change its fate. This underscores the complexities of enacting significant policy changes that would provide much-needed support for SAF development.
Technological Considerations for SAF
The impetus behind SAF lies in its ability to meet full-lifecycle sustainability metrics. Such standards ensure SAF does not overly deplete resources or compete with food production.
Innovations in SAF technology are focused on diversifying the feedstocks, from wood chips to municipal waste, thereby expanding resource availability and minimizing environmental impacts.
While SAF is a promising alternative, the industry must also consider other decarbonising methods. Electric aircraft and fleet renewals continue to hold potential, albeit with limitations compared to the immediate capabilities of SAF.
Economic Implications of SAF
Significant capital investment is required to escalate SAF production to a viable level. Industry analysts suggest that without financial incentives, global SAF production will fall short of meeting even 1% of aviation fuel needs by mid-2030s.
The introduction of tax credits is viewed as a pivotal measure to attract investments and catalyse production. This economic strategy is essential for achieving the intended sustainability goals of the aviation industry.
Ultimately, aligning economic incentives with environmental goals is deemed crucial to fostering a sustainable aviation industry that can meet future demands.
A Call to Action for Stakeholders
The airline industry is collectively committed to the integration of SAF as a means to reduce fossil fuel reliance. However, substantial progress requires active participation from all stakeholders, including governments, airlines, and the private sector.
President Biden’s advocacy for SAF incentives reflects a broader commitment to sustainable aviation. By aligning policy with technological and economic strategies, there is potential to transform the aviation industry into a model of environmental responsibility.