Clean Fuels Ready to Fly Under New SAF Guidance

Cindy Zimmerman

Clean Fuels Alliance America is pleased with guidance from the U.S. Department of the Treasury and Internal Revenue Service (IRS) for the Sustainable Aviation Fuel (SAF) Credit established by the Inflation Reduction Act (IRA). The guidance enables companies currently producing SAF under the Renewable Fuel Standard (RFS) to access the base value of the tax incentive while it defers allowing producers to use the Argonne National Laboratory’s GREET model to calculate additional credit until it is updated by March 2024.

“We appreciate President Biden recognizing that American farmers and clean fuel producers will be providing essentially all of the sustainable aviation fuel available over the next 20 years to meet the administration’s Grand Challenge,” said Kurt Kovarik, Vice President of Federal Affairs for Clean Fuels. “Enabling U.S. taxpayers to access a lifecycle model developed by U.S. national labs is clearly the best way to provide assurance to fuel producers and meet the demand for low-carbon fuels from airlines and passengers.”

The guidance is also positive for U.S. soybean farmers.

“America’s soybean farmers are always innovating in an effort to expand our markets and provide even more benefits to consumers,” said Josh Gackle, American Soybean Association president and North Dakota soybean farmer. “We are very pleased with this guidance and the opportunities it could bring for soy. Biofuels continue to be not only a viable market but a growing market when it comes to U.S. roadways and workforce fleets. There is legislation on the table right now that would expand biofuels’ great functionality and environmental benefits to ocean-going vessels. And now, with this guidance supporting soy and other plant-based feedstocks going into sustainable aviation fuel, the sky truly is the limit for soy.”

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