05.17.2024
Uncertainty with 45z tax credit may affect Q1 2025 biofuel contracts
The expiring BTC provides a one dollar per gallon blenders credit up front with an additional 30 to 40 cents of credit to producers on the backend. Crimson...
Renewable jet fuel consumption in the United States stands at 16.3 million gallons as of August 31, 2023. Renewable jet fuel consumption is currently three percent above full-yar 2022 renewable jet fuel blending of 15.8 million gallons. The Jacobsen expects total 2023 renewable jet fuel consumption to expand to between 24 million to 28.5 million gallons by year-end.
The Sustainable Aviation Fuel (SAF) Grand Challenge was announced in 2021 to expand domestic consumption of renewable jet fuel. The goal of the “Challenge” is to reach three billion gallons of SAF by 2030 and 35 billion gallons by 2035.
2022 consumption of renewable Jet jumped 212 percent, moving from 5.1 million gallons consumed in 2021 to 15.8 in 2022. Despite the large 2022 increase, SAF accounted for less than 0.1 percent of the total jet fuel used by major U.S. Airlines.
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