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Policies like 45Z will likely make or break SAF market opportunities
Federal policy will likely make or break market opportunities for sustainable aviation fuel production.
CoBank economist Jacqui Fatka says SAF could generate demand for domestic grains and oilseeds similar to the ethanol and renewable diesel markets.
“But a lot of things have to come in line for this to be successful for the goals of reducing those emissions, but also that goal of helping provide a new revenue stream back to rural America.”
She tells Brownfield tax incentives like 45Z have the potential to push the SAF market forward.
“Unfortunately we’ve not been able to get that going as fast as initially intended.”
Fatka says USDA Secretary Tom Vilsack is trying to ensure 45Z guidance is favorable for U.S. farmers.
“So some of the holdup that I’m hearing is because USDA is trying to take some of those comments that came in this summer through their open comment process on the impact to climate-smart ag and what kind of value should be given to the farm within this GREET model that we’re also waiting to see updated.”
She says while the 45Z tax credit is set to take effect January 1st, the final guidance has yet to be issued.
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