AFCC urges Biden to provide $20 billion in federal loan guarantees for SAF manufacturers

The Alternative Fuels & Chemicals Coalition is urging the Biden administration to incentivize the production and use of sustainable aviation fuel (SAF), not just through support of an SAF blenders tax credit but through federal loan guarantees.

“This recommended action would support airlines, which are in significant need of large volumes of green fuel that is cheaper and more widely available to decarbonize 12 percent of transportation’s carbon dioxide emissions globally,” AFCC stated. “This result would contribute substantially towards a necessary global net-zero solution … In order to increase commercial volumes of SAF and to meet the linear growth forecasted by the International Civil Aviation Organization (ICAO), a complete replacement of conventional petroleum jet fuel would require approximately 170 new large biorefineries to be built every year from now to 2050 states ICAO in its 2020 jet fuel report. Furthermore, by 2030, LanzaTech projects in a recent analysis that mandated SAF demand will be far higher than 50 billion gallons per year, thus requiring new technologies and expanded feedstock pool. Therefore, to approach these projected significantly increasing SAF volumes, the White House, in conjunction with the DOE, needs to target providing at least $20 billion in immediate new federal loan guarantee authority from Congress for SAF manufacturers through the DOE’s Loan Program Office. This funding would spawn new supply chains of SAF by increasing the development of substantially more SAF manufacturing facilities in the U.S., as additional low-carbon SAF technology continues to develop.”

The coalition says federal support for SAF growth is critical to reduce greenhouse gas emissions and mitigate climate change.

“Simultaneously, it would promote innovative technologies from producers, and will strengthen the domestic supply chain, create good paying jobs, bolster rural economies across the country by creating new revenue streams for agricultural producers and value-added markets for forest residuals and other waste products,” AFCC stated.