US sustainable aviation gas manufacturing goal faces price, margin challenges.
America’ objective of quickly ramping up manufacturing of sustainable aviation gas (SAF) might encounter sturdy headwinds as producers balk on the low margins for the biofuel and a few airways flag issues over the expensive swap, consultants stated.
President Joe Biden, who has made tackling local weather change a central pillar of his administration, launched a problem in 2021 to provide a minimum of 3 billion gallons of SAF yearly by 2030, a steep leap from the present 15.8 million gallons as per U.S. authorities knowledge.
U.S. manufacturing of SAF might be 2.1 billion gallons by 2030, S&P World Commodity Insights has estimated, primarily based on upcoming tasks.
“Numerous extra funding (is) wanted to hit that (3 billion) goal,” stated Wooden Mackenzie analyst Gordon McManus.
Lots is using on SAF because the U.S. Power Division has stated different sources, resembling battery applied sciences and hydrogen, are usually not anticipated to contribute to considerably decreasing aviation emissions till after 2050.
U.S. sustainable aviation gas manufacturing goal faces price, margin challenges, November 1, 2023
