Biofuel boosters support GREET use for SAF

WASHINGTON — Farm, aviation and biofuel groups voiced support for a science-based approach to measure greenhouse gas emission reductions in Sustainable Aviation Fuel.

The U.S. Treasury Department and Internal Revenue Service released guidance for the implementation of the SAF tax credit utilizing the Department of Energy’s GREET — Argonne National Laboratory’s Greenhouse Gases, Regulated Emissions and Energy Use in Transportation — model to determine tax credit eligibility.

GREET was developed to measure greenhouse gas emissions from the field to the car or airplane.

Here are some reactions from the news:

“We are confident in the scientific data backing the GREET model and look forward to the confirmation the administration finds as they analyze it’s data. The GREET model accurately depicts agriculture’s environmental role and opens a world of new opportunities for sustainable aviation fuel. As farmers, we look forward to continue playing a role in the decarbonization of our sector.”

Dave Rylander, president

Illinois Corn Growers Association

“While there are important carbon modeling updates and details that still need to be worked out, we are cautiously optimistic that this guidance could open the door to an enormous opportunity for America’s farmers, ethanol producers and airlines. RFA applauds the Treasury Department for ensuring the best available science and data on SAF will be recognized. By specifying that the GREET model will be an acceptable methodology for determining eligibility, Treasury has strengthened the credibility, transparency and scientific robustness of the SAF tax credit program.”

Geoff Cooper, president and CEO

Renewable Fuels Association

“America’s soybean farmers are always innovating in an effort to expand our markets and provide even more benefits to consumers. We are very pleased with this guidance and the opportunities it could bring for soy. Biofuels continue to be not only a viable market, but a growing market when it comes to U.S. roadways and workforce fleets. There is also legislation on the table right now that would expand biofuels’ great functionality and environmental benefits to ocean-going vessels. And now, with this guidance supporting soy and other plant-based feedstocks going into sustainable aviation fuel, the sky truly is the limit for soy.”

Josh Gackle, president

American Soybean Association

“Any GREET update must follow sound science and account for the proven environmental benefits of American-made bioethanol. The Department of Energy’s Argonne-GREET model — widely accepted as the gold standard carbon model by the nation’s scientists, academics and researchers — already reflects the latest science showing bioethanol’s limited impact on land use and its significant reduction in greenhouse gas emissions. The Biden administration should hold fast to this widely accepted science and ignore those who seek to limit SAF opportunities by pushing an inaccurate and outdated narrative about bioethanol.”

Emily Skor, CEO

Growth Energy

“The Advanced Biofuels Association is grateful for the methodology and modeling flexibility outlined in the Treasury Department’s guidelines on SAF tax credits. Recognizing that a one-size-fits-all approach is impractical, the Biden administration’s acknowledgment of this reality is crucial for achieving significant carbon reductions in air travel. As the name suggests, SAF is the most viable sustainable aviation fuel option to reach our shared goal of net-zero emissions by 2050 and demonstrates why we need an all-of-the-above climate strategy. Our member companies have already made great investments and advancements in SAF production, and we hope that today’s announcement signals further government support for the technology.”

Michael McAdams, president

Advanced Biofuels Association

“While POET is pleased to see a pathway for SAF evaluation under the GREET model, more clarity is needed for corn-based biofuels. Treasury’s guidance greenlights foreign sugar cane bioethanol while leaving American corn-based bioethanol in limbo. Tax certainty is essential to support the magnitude of investment required to achieve the administration’s 2030 production and emissions goals. American corn-based bioethanol is the best hope to supply SAF swiftly, affordably and on a global scale. Tax guidance for SAF should reflect scientific consensus as Congress intended, and expertise from the federal government’s top renewable energy laboratory is essential.”

Joshua Shields, corporate affairs senior vice president

POET

“The doubling of SAF production to 600 million liters in 2023 was encouraging as is the expected tripling of production expected in 2024. But even with that impressive growth, SAF as a portion of all renewable fuel production will only grow from 3% this year to 6% in 2024. This allocation limits SAF supply and keeps prices high. Aviation needs between 25% and 30% of renewable fuel production capacity for SAF. At those levels aviation will be on the trajectory needed to reach net-zero carbon emissions by 2050. Until such levels are reached, we will continue missing huge opportunities to advance aviation’s decarbonization. It is government policy that will make the difference. Governments must prioritize policies to incentivize the scaling up of SAF production and to diversify feedstocks with those available locally.”

Willie Walsh, director general

International Air Transport Association