Airlines and businesses tied to the bioeconomy are stressing how critical the right policies will be to help fully develop a market for sustainable aviation fuels (SAF) that can help create a new market for farmers.
Sustainable aviation fuels were a major focus Monday at the Agri-Pulse Ag & Food Policy Summit. Leaders highlighted the importance of measuring carbon, but also ensuring that the same model used to give SAF producers tax credits also are used for the Renewable Fuel Standard.
"The beauty of where agriculture sits is they hold the keys. You are the above-ground oil wells," said Tim Obitts, CEO of Alder Renewables, which is focused on converting cellulosic residue and woody biomass into jet fuel.
The Biden administration is pushing to see 3 billion gallons of SAF by 2030, which is about 10% of the total aviation fuel market. Aviation groups have committed to getting the industry to "net-zero" carbon emissions by 2050.
The ethanol industry is primed for an alcohol-to-jet conversion, but that will require both tax credits and changes to how EPA scores out corn-based ethanol in the Renewable Fuel Standard (RFS).
BEYOND TAX CREDITS
While the SAF tax credits can spur some initial industry investment, SAF advocates said a longer-term need will be to change the way the GREET model is used at the Environmental Protection Agency to generate biofuel renewable identification numbers (RIN) credits at EPA under the RFS. "Tax credits that expire in 2027 cannot serve as an investment signal for building a new industry, which is what we need for alcohol-to-jet," said Alex Menotti, vice president of government affairs, policy and sustainability for Lanza Jet.
Lanza Jet opened a 10-million-gallon, alcohol-to-jet-fuel facility in Georgia earlier this year. To get RIN credits, Lanza Jet began importing ethanol from Brazilian sugarcane.
Menotti said creating jet fuel from ethanol is the most scalable option for the aviation industry, and the best products long term are biofuels from the Midwest. EPA, though, must update its models and lifecycle analysis, which have not changed since 2010. Menotti said policy needs a "turnkey solution" that allows EPA to more rapidly stay current with the latest science.
"EPA needs to update their own rules to recognize the climate benefits for corn ethanol," Menotti said.
Obitts was among those who agreed that Congress needs to update the Renewable Fuel Standard to force some changes in EPA's stance.
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Categories: Iowa, Government & Policy