Inflation Reduction Act fuels hope for sustainable aviation & a boost for farmers as feedstock demand rises

The Inflation Reduction Act sparks growth in sustainable aviation fuel production, offering farmers new opportunities.

With the electric vehicle revolution gaining momentum, there is another sector poised for transformation: sustainable aviation fuel. A recent report by the Renewable Fuels Association (RFA) revealed that, right now, the United States only produces a modest amount of sustainable aviation fuel, but the recently passed Inflation Reduction Act is set to change that landscape.

According to RFA’s Vice President of Strategy and Innovation Tad Hepner, this climate-focused legislation presents renewable fuels a golden opportunity to make significant inroads within the aviation transport sector.

“There’s between 16- and 18-million gallons of sustainable aviation fuel produced annually [in the U.S.],” Hepner explained. “That’s a very small number. We are in the process of ramping up those pathways to produce more sustainable aviation fuel. It’s going to be a process, but I think with the recent passage of the Inflation Reduction Act, it’s given an opportunity for renewable fuels to play more of a part in the aviation transport sector.”

This development spells good news for corn and soybean farmers as the renewable fuels industry expands. Hepner predicts an increase in ethanol production, particularly for the alcohol-to-jet sector. And as hybrid and electric vehicles gain ground in the over-the-road transportation sector, some ethanol production may shift toward civil aviation.

Hepner emphasizes that the rising demand for feedstock could lead to higher prices, offering a potential financial boost for farmers. This exciting prospect not only opens new avenues for sustainable aviation but also promises to positively impact the agricultural sector.

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