EIA: US Production Capacity For Sustainable Aviation Fuel To Grow
The U.S. sustainable aviation fuel (SAF) production capacity could rise from about 2,000 barrels per day (b/d) to nearly 30,000 b/d in 2024 with all announced capacity additions. Phillips 66’s Rodeo Renewed project aims to produce up to 10,000 b/d of SAF by summer, and Diamond Green Diesel’s Port Arthur project expects 15,000 b/d by year-end. SAF investments are driven by the Renewable Fuel Standard, federal and state incentives, and a White House goal to meet all aviation fuel demand with SAF by 2050.
JULY 18, 2024
BY U.S. ENERGY INFORMATION ADMINISTRATION
The production capacity of sustainable aviation fuel (SAF) in the U.S. could increase significantly from around 2,000 barrels per day (b/d) to nearly 30,000 b/d in 2024 if all announced capacity additions come on line. Phillips 66’s Rodeo Renewed project is expected to produce up to 10,000 b/d of SAF starting this summer, while Diamond Green Diesel’s Port Arthur SAF project is anticipated to contribute about 15,000 b/d by the end of the year. SAF, an alternative to petroleum jet fuel, is made from agricultural and waste feedstocks and consumed in blends with petroleum jet fuel.
Investments in SAF have surged due to the U.S. Environmental Protection Agency’s Renewable Fuel Standard (RFS), federal tax credits, and state programs that incentivize the use of the fuel. The White House has set a goal to meet 100% of U.S. aviation fuel demand with SAF by 2050. In 2023, U.S. consumption of petroleum jet fuel was about 1.6 million b/d, and it is projected to exceed 2.0 million b/d by 2050 according to the Annual Energy Outlook.
SAF production data is included in the “Other Biofuels” category of the Petroleum Supply Monthly. Historically, U.S. production of other biofuels, including renewable heating oil, renewable naphtha, and renewable propane, has been minimal but is growing due to the expanding renewable diesel industry. U.S. production of other biofuels increased from 2,000 b/d in 2020 to 19,000 b/d in 2023.
At the start of 2024, U.S. SAF production capacity was around 2,000 b/d, with only two plants capable of producing SAF: World Energy’s plant in Paramount, California, and Montana Renewables’ plant in Great Falls, Montana. The Short-Term Energy Outlook forecasts U.S. production of other biofuels to increase by about 50% in 2024 and nearly double by 2025, driven primarily by increased SAF production capacity. The continued rise in renewable diesel production is expected to contribute to this growth as well.
Source Link : https://ethanolproducer.com/articles/eia-us-production-capacity-for-sustainable-aviation-fuel-to-grow
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