Inflation Reduction Act Boosts Sustainable Aviation Fuel
TL/DR –
The Inflation Reduction Act has initiated billions in funding towards alternative fuel sources such as sustainable aviation fuel (SAF), which is made from renewable sources like vegetable oil or animal fat. Given the lack of viable electric or hydrogen-powered planes on the market, SAF is being seen as a promising solution to reducing the aviation industry’s carbon footprint, which currently contributes to over 2% of global CO2 emissions. However, challenges remain in scaling up SAF production due to high costs, potential environmental impacts of increased feedstock production, and variations in sustainability among different SAFs depending on their production methods.
Congress Authorizes Trillions for New Spending, Influencing the Economy
Congress has approved trillions for spending via the Inflation Reduction Act, CHIPS and Science Act, and the Bipartisan Infrastructure Law. Kai Ryssdal, host of “Marketplace,” analyzes how these influxes of funds could impact the economy in a series titled “Breaking Ground.”
This episode looks at the aviation industry’s shift toward sustainable aviation fuel (SAF) promoted by the Inflation Reduction Act.
Understanding Sustainable Aviation Fuel
SAF, an alternative to traditional petroleum jet fuel, is derived from renewable sources such as vegetable oil or animal fat. Unlike the auto industry, aviation has no electric or hydrogen-powered alternatives for long-haul jets, said Candelaria Bergero, a researcher at the University of California, Irvine.
With 100,000 airline flights daily contributing to over 2% of global carbon dioxide emissions, Bergero emphasizes the need for an environmentally friendly alternative to conventional jet fuel.
Bergero and her team examined various scenarios in which the aviation industry could reduce emissions. Their study revealed the importance of large-scale deployment of SAFs in achieving a net-zero aviation system.
The Government’s Role in Promoting SAF
The U.S. produced under 16 million gallons of SAF in 2022, but the Biden administration aims to increase this to 35 billion gallons by 2050 as part of their strategy for reducing aviation’s climate impact. The Inflation Reduction Act introduced a new tax credit and grant program to incentivize SAF production.
Challenges and Limitations of SAF
Despite these efforts, SAF still only meets less than 1% of global jet fuel demand. Increasing production capacity is essential, but this isn’t a quick process, given the high costs and need for trained personnel, said Bhupendra Khandelwal, a professor at the University of Alabama.
Bergero added, not all SAFs are equally sustainable. For instance, using fossil fuels for biofuel production can offset carbon savings. Moreover, large-scale SAF production may lead to land competition and potentially harm the environment. A holistic approach is needed to ensure the benefits of SAF outweigh the potential challenges.
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