U.S. sustainable aviation fuel capacity to expand significantly
The United States is poised for a significant increase in its production capacity for sustainable aviation fuel (SAF) in 2024, according to the Energy Information Administration, an agency under the U.S. Department of Energy.
The current production capacity of SAF in the U.S. stands at approximately 2,000 barrels per day (b/d). This capacity is projected to surge to nearly 30,000 b/d by the end of 2024, provided that all announced capacity additions come online as planned. Notable projects contributing to this growth include Phillips 66’s Rodeo Renewed project, expected to add up to 10,000 b/d, and Diamond Green Diesel’s Port Arthur project, which is set to contribute about 15,000 b/d of SAF by the year’s end.
The expansion in SAF production is driven by several factors, including the U.S. Environmental Protection Agency’s Renewable Fuel Standard (RFS), federal tax credits, and state incentives aimed at promoting the use of renewable fuels. Additionally, the Biden administration has set an ambitious goal to meet 100% of U.S. aviation fuel demand with SAF by 2050. In 2023, the U.S. consumed around 1.6 million b/d of petroleum jet fuel, and demand is expected to exceed 2.0 million b/d by 2050.
Role of “Other Biofuels”
SAF is classified under the “Other Biofuels” category in EIA reports. This category also includes renewable heating oil, renewable naphtha, renewable propane, and renewable gasoline, among others. The production of Other Biofuels has been increasing, thanks to the by-products of the growing renewable diesel industry. The EIA forecasts a 50% increase in Other Biofuels production in 2024, with a near doubling of production from 2024 to 2025, largely due to the rise in SAF production capacity.
