CoBank: SAF Policy Questions Remain
Sustainable aviation fuel could emerge as the next big opportunity for substantial growth in U.S. biofuel production with proper market and regulatory incentives. Agricultural feedstocks could play a leading role in the supply chain for domestic SAF production. However, any meaningful growth opportunities will be largely dependent on favorable policies and adequate incentives for farmers and the wider biofuels industry.
CoBank’s Knowledge Exchange said the guidance on the 45Z tax credit will be a determining factor for the extent of agriculture’s role in SAF production.
“Farmers are hopeful the new guidance will offer more flexibility than the 40B guidance did in setting on-farm conservation practices required to be eligible for the credit,” says Jacqui Fatka, an economist with CoBank. “Farmers want to be able to employ on-farm conservation practices that are applicable to their individual operations.”
She also says biofuel producers won’t expand until the new guidance gets published.
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