On July 17, the U.S. Energy Information Administration reported that sustainable aviation fuel (SAF) production capacity in the United States could surge by 1400% in 2024, contingent upon the completion of all announced capacity expansions.
The EIA highlighted the significance of this potential increase, projecting a 50% rise in domestic biofuels production by 2024, primarily driven by the growth in SAF production. This growth aligns with the White House’s ambitious goal to satisfy the entirety of U.S. aviation fuel demand with SAF by 2050, aiming to supply a minimum of 3 billion gallons annually by 2030. In 2023, the EIA noted that the U.S. consumed approximately 1.6 million barrels per day (bpd) of jet fuel.
SAF, derived from agricultural and waste feedstocks, serves as an eco-friendly alternative to traditional petroleum-based jet fuels. It has garnered increased investment interest, partly due to the advantages provided by the U.S. Environmental Protection Agency’s Renewable Fuel Standard.
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In numerical terms, the EIA forecasts SAF production to escalate from 2,000 bpd to nearly 30,000 bpd in 2024. Phillips 66’s Rodeo facility in California achieved its target of producing 50,000 bpd of renewable fuels in June, including 10,000 bpd of SAF. Meanwhile, Valero’s Diamond Green project, in collaboration with Darling Ingredients at its Port Arthur, Texas refinery, is slated to commence operations in late 2024, expected to yield 15,000 bpd of SAF by year-end.