How Government Initiatives Can Propel SAF Adoption for Aircraft Operators

Sustainable aviation fuel (SAF) is a low-carbon synthetic jet fuel that can be used safely in any turbine-powered aircraft. Derived from sustainable feedstocks – including cellulosic biomass, wastes and residues, waste steel mill gasses and captured CO₂ – SAF potentially can reduce lifecycle greenhouse gas (GHG) by up to 80% compared to conventional jet fuel and is considered pivotal to achieving the aviation industry’s goal of a 50% net reduction in CO₂ emissions in 2050.

However, SAF currently faces several challenges that limit its production and use, such as high costs, limited availability, technical barriers, and regulatory uncertainties. To overcome these challenges, government initiatives at the national and international levels are essential to create a supportive policy environment, provide financial incentives, and foster innovation and collaboration among stakeholders. Let’s review some of the recent and proposed government initiatives that aim to advance SAF production and adoption for aircraft operators, especially in the business aviation sector and discuss how these initiatives can benefit the industry, the environment, and the economy.

The U.S. Sustainable Aviation Fuel Grand Challenge

One of the most ambitious and comprehensive government initiatives for SAF is the U.S. Sustainable Aviation Fuel Grand Challenge, launched in September 2021 by the Biden administration. This initiative is a government-wide effort that involves the Departments of Energy, Transportation, Agriculture, Defense, the National Aeronautics and Space Administration, the General Services Administration, and the Environmental Protection Agency.

The goal of the SAF Grand Challenge is to meet the demand for SAF by working with stakeholders to reduce costs, enhance sustainability, and expand production and use of SAF that achieves a minimum of a 50% reduction in life cycle GHGs compared to conventional fuel. The initiative has set specific targets for SAF production and adoption, such as:

• Producing at least 3 billion gallons of SAF per year by 2030, which would enable a 20% reduction in aviation emissions compared to business as usual.
• Achieving 100% SAF adoption by 2050, which would enable a net-zero carbon aviation sector.

To achieve these targets, the initiative will support various actions, such as:

• Developing and deploying new technologies and processes for SAF production, such as biorefineries, electrofuels, and power-to-liquid systems.
• Providing financial incentives and tax credits for SAF producers and users, such as the proposed Sustainable Aviation Fuel Blender’s Tax Credit under the Build Back Better Agenda.
• Establishing standards and regulations for SAF quality, certification, and sustainability, such as the ASTM International standards and the ReFuelEU Aviation initiative.
• Enhancing research and development, data collection, and information sharing on SAF, such as the Alternative Jet Fuel Database and the Sustainable Aviation Fuel Initiative.
• Fostering collaboration and coordination among federal agencies, industry stakeholders, and non-governmental organizations, such as the Commercial Aviation Alternative Fuels Initiative and the Farm to Fly 2.0 partnership.

The SAF Grand Challenge is expected to have significant benefits for the aviation industry, the environment, and the economy, such as:

• Reducing GHG emissions and air pollution from aviation, which would contribute to the global efforts to combat climate change and improve public health.
• Creating new economic opportunities and jobs in the bioenergy, agriculture, and manufacturing sectors, especially in rural and disadvantaged communities.
• Enhancing energy security and diversity by reducing the dependence on fossil fuels and increasing the use of domestic and renewable resources.
• Improving aircraft performance and efficiency by using SAF, which has higher energy density and lower freezing point than conventional jet fuel.

The EU and US Policy Approaches to Advance SAF Production

Another important government initiative for SAF is the joint policy approach by the European Union (EU) and the United States (US) to advance SAF production and use in both regions. This initiative was announced in June 2021 as part of the EU-US Summit, where the leaders of both parties agreed to cooperate on various issues, including climate action and clean energy.

The joint policy approach aims to align the regulatory frameworks and incentives for SAF production and use in the EU and the US, as well as to promote global standards and best practices for SAF. The initiative will focus on the following actions:

• Developing a common methodology and criteria for measuring the life cycle GHG emissions and sustainability of SAF, based on the existing frameworks such as the EU Renewable Energy Directive and the US Renewable Fuel Standard.
• Supporting the development and deployment of new technologies and feedstocks for SAF production, such as power-to-liquid, waste-to-energy, and algae-based fuels.
• Providing financial incentives and market-based mechanisms for SAF producers and users, such as grants, loans, tax credits, mandates, and carbon pricing.
• Encouraging the use of SAF by public and private fleets, such as government and military aircraft, as well as by international organizations and multilateral institutions.
• Enhancing research and innovation, data collection, and information sharing on SAF, such as the Clean Aviation Partnership and the Horizon Europe program.
• Fostering collaboration and coordination among government agencies, industry stakeholders, and non-governmental organizations, such as the International Civil Aviation Organization and the International Air Transport Association.

The joint policy approach is expected to have positive impacts for the aviation industry, the environment, and the economy, such as:

• Reducing GHG emissions and air pollution from aviation, which would help achieve the Paris Agreement goals and the EU Green Deal objectives.
• Creating a level playing field and a competitive market for SAF producers and users, which would stimulate innovation and investment in the sector.
• Enhancing transatlantic cooperation and leadership on SAF, which would influence the global standards and practices for SAF.
• Improving aircraft performance and efficiency by using SAF, which has higher energy density and lower freezing point than conventional jet fuel.

SAF is a key solution for reducing GHG emissions and decarbonizing the aviation sector, especially for long-distance flights that cannot be easily electrified or powered by hydrogen. However, SAF currently faces several challenges that limit its production and use, such as high costs, limited availability, technical barriers, and regulatory uncertainties. To overcome these challenges, government initiatives at the national and international levels are essential to create a supportive policy environment, provide financial incentives, and foster innovation and collaboration among stakeholders.

Unlock the potential of sustainable aviation fuel (SAF) with Just Aviation’s insights into government initiatives driving adoption. Discover how regulatory frameworks and incentives can accelerate SAF integration into your operations, reducing environmental impact while ensuring compliance. Stay informed about the latest developments and seize the opportunities presented by these initiatives with our expert analysis and strategic guidance.