U.S. Government subsidies Sustainable Aviation Fuel for the first time in history

The Inflation Reduction Act signed into law last month by the US Congress subsidies for the first time in history a number of technologies considered essential in helping the country reach net-zero emissions by 2050, including Sustainable Aviation Fuel (#SAF).

Such a subsidy move may reduce costs for SAF to a point where it would be approximately equal to fossil jet fuel prices, although several variables, such as costs of technology and production need to be taken into account.

SAF can be dropped straight into existing infrastructure and aircraft. It has the potential to provide a lifecycle carbon reduction of up to 70% over jet fuel. That is the reason why airlines estimate they will likely depend on SAF for 65% of their emissions reductions by 2050, according to the International Air Transport Association (IATA) 2021’s climate strategy.

The costs for power-to-X aviation fuel from carbon capture and direct air capture are currently higher than other types of SAF but the potential is greater for their costs to decrease because they’re not limited by potentially constrained feedstocks.

This is especially the case considering government support the Inflation Reduction Act gives to these types of tech through multiple tax credits.

Find more on the Inflation Reduction Act here.


Leave a reply