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Environmental Group Sees U.S. e-Fuel Potential
By: Curt Epstein
Caption: The report sees the Midwest as a future hotbed of SAF production
Word Count: 419
A new paper released by the Environmental Defense Fund (EDF) shows the potential of second-generation sustainable aviation fuel (SAF) produced from CO2, water, and renewable electricity (e-fuels), describing it as “a huge economic and climate opportunity for the U.S.”
SAF is considered one of the best near-term options for aviation to meet its emission reduction goals, but how and from what it is made weighs heavily on its benefits over conventional jet fuel.
The key, the EDF study noted, is in the electricity. When it is sourced from excess renewable energy and the carbon component comes from waste CO2 from other industrial processes, manufacturers can produce clean, affordable SAF. It estimates that when e-fuels are produced in a supply-driven electricity market, costs could be halved compared to mainstream estimates. The paper’s authors believe there will be enough surplus renewable electricity in the U.S. to meet most, if not all, jet fuel demand with e-fuels in the 2050 timeframe.
With hundreds of plants producing ethanol in the Midwest, their waste CO2 combined with the region’s abundant renewable energy could account for the bulk of the 3 billion gallons of SAF a year by 2030 as requested in the SAF Grand Challenge issued by the Biden Administration, the report stated.
“By marrying CO2 from local ethanol plants with surplus renewable electricity, the U.S. has the potential to produce some of the cheapest, most sustainable aviation fuels on the market, while growing the country’s economy, meeting climate goals, and accelerating the energy transition,” said Pedro Piris-Cabezas, EDF’s senior director for global transportation and one of the study's authors. “State and federal policymakers have a critical role to play in supporting the growth of this exciting new industry.” 
The report comes as the U.S. Treasury Department is expected to issue guidance on the 45Z Clean Fuel Production Credit, a tax incentive for the domestic production of clean transportation fuels, which could provide up to a $1.75 credit per gallon of fuel based on its carbon intensity.
“Federal policymakers should give e-fuels a chance to compete on a level playing field with other alternative fuels by protecting the safeguards written in the IRA that ensure only high-integrity sustainable aviation fuels receive generous taxpayer subsidies,” Piris-Cabezas concluded. “By nurturing a Midwest e-fuels industry, the U.S. can attract global demand for a made-in-America product and secure its position as an international leader in sustainable aviation.”