A new study on the economic impact of sustainable aviation fuel production and use finds it would provide great benefits to the Midwest since two of the major feedstock for SAF will likely be corn and soybean oil. The study, conducted by Decision Innovation Solutions (DIS), was released last week at the Iowa Renewable Fuels Summit.
In order to reach the 35-billion-gallon goal, the study found that 63 new 200-million-gallon-per-year ethanol plants, 30 new ethanol-to-jet SAF production facilities and six new oils/fats SAF production facilities would need to be built.
DIS report author David Miller concluded: “SAF production provides a substantial opportunity for Midwestern states, Midwestern farmers, and Midwestern renewable fuel producers to prosper in the coming years if the SAF Grand Challenge comes to fruition and the Midwestern states take steps to be active participants in making the roadmap come to life. The pathway that DIS estimates most likely to be realized has [oils/fats]-based SAF and ethanol-to-jet (ETJ) being the two most prominent pathways for SAF production at least for the next 20 years.”
In addition to a huge economic jolt from the construction of the new SAF infrastructure, ongoing operations would:
Boost employment by 224,440 jobs
Increase labor income by $9.3 billion
Add $427 million to farm revenues in ethanol plant basis premiums alone
Raise farm income by $11,670 for a typical 1000-acre farm split 50/50 between corn and soybeans.
With corn production grow outpacing demand, without the new SAF market corn farmers would face an extended period of overproduction, resulting in:
Reducing corn acreage 68 million acres by 2050
Slashing of farm revenues by nearly $10 billion per year
Cutting farm income by $60,240 for a typical 1000-acre farm split 50/50 between corn and soybeans.