USA : Department of Energy Set to Invest $3 Billion in 2 Sustainable Aviation Fuel Companies
The U.S. Department of Energy (DOE) is investing $3 billion through its Loan Programs Office in two companies, Montana Renewables and Gevo, to boost sustainable aviation fuel production. Montana Renewables, which produces 30 million gallons annually, will expand its output, while Gevo, based in South Dakota, will use its $1.46 billion investment to develop a facility supporting its alcohol-to-jet project. These investments are part of broader efforts to reduce air travel emissions and support clean energy initiatives in aviation.
The dedication to producing greener fuel continues as the U.S. government’s Department of Energy (DOE) shared it’ll be investing $3 billion through its Loan Programs Office (LPO) to two fuel companies. This is in an effort to cut down on air travel emissions and create a cleaner method of power planes and jets—which will bolster the economy and help reduce the impact on the environment.
$1.44 Million to Montana Renewables
Montana Renewables is one of the two loan recipients. It already has an extremely high capacity—one of the largest in the country—for sustainable aviation fuel. It produces around 30 million gallons a year, but the new investment will allow it to expand its quantity even further.
On top of its fuel for planes, the company creates renewable diesel and naphtha, too. The investment will go to all three areas of the business, increasing volume and its ability to turn everyday liquids and wastes (like vegetable oil and grease) into energy that’s friendlier to the environment.
$1.46 Million to Gevo
The second company to get a loan through the DOE is Gevo. Based in Lake Preston, SD, this company also has an impressive capacity for sustainable aviation fuel—60 million gallons to be exact. It has other products in its portfolio, including corn oil and animal feed.
With the investment, Gevo, too, will be working towards a net zero carbon footprint with the help of a new facility. This will help the company with production and focusing on its alcohol-to-jet project.
Cutting Air Travel Emissions
Among its other initiatives, the DOE has zeroed in on air travel emissions, particularly in the last few years. In 2022, it shared a plan for achieving carbon neutral status in aviation. Nearly the entirety of its goals were centered on sustainable aviation fuel, which points to the increased funding towards companies that have high capacities for producing this type of power.
Sky-High Goals for Aviation Fuel
Airlines and multiple governments worldwide are on board with powering planes, jets, and other aircraft through sustainable aviation fuel. The DOE has been investing billions, and bodies such as the EU have set lofty goals for sustainable travel, including that by 2025, 2% of fuel must be sustainable aviation fuel.
As for airlines and manufacturers, Virgin Atlantic is one example of a company that used this cleaner fuel to fly from the UK to New York last autumn. Airbus has also been developing a new plane that can run purely on hydrogen.
Source Link : https://www.thomasnet.com/insights/doe-invests-in-sustainable-aviation-fuel/
