Sustainable Aviation Fuel: The U.S. Market’s Takeoff Point

Sustainable Aviation Fuel (SAF) is emerging as a critical solution for decarbonizing the aviation sector, one of the hardest industries to electrify. In the United States, interest in SAF is growing rapidly, driven by a mix of federal incentives, corporate commitments, and regulatory signals—but significant challenges remain on the path to widespread adoption.

The Current Landscape

As of 2024, SAF represents less than 0.1% of total jet fuel consumption in the U.S., but momentum is building. Airlines including United, Delta, American, and JetBlue have announced multi-million-gallon offtake agreements, while major fuel producers like Neste, World Energy, and Chevron are expanding SAF production capacity. SAF can reduce lifecycle greenhouse gas emissions by up to 80% compared to conventional jet fuel, depending on the feedstock and technology used.

Currently approved SAF pathways in the U.S. include fuels derived from used cooking oil, animal fats, municipal solid waste, and agricultural residues. These drop-in fuels are certified to blend with conventional jet fuel up to 50% without requiring modifications to aircraft or infrastructure.

Policy Support

The U.S. government has introduced several measures to boost SAF adoption. The Inflation Reduction Act (IRA) includes a SAF-specific tax credit of up to $1.75 per gallon based on the fuel’s carbon intensity. In addition, the Sustainable Aviation Fuel Grand Challenge, a joint initiative by the DOE, DOT, and USDA, aims to produce 3 billion gallons of SAF per year by 2030 and 35 billion by 2050—roughly the full volume of current U.S. jet fuel demand.

Furthermore, the Federal Aviation Administration (FAA) has increased R&D support and is facilitating supply chain coordination to scale production.

Barriers to Scale

Despite growing demand, SAF faces multiple challenges: limited feedstock availability, high production costs (2–5x more than conventional jet fuel), and the need for investment in new biorefineries. Long-term policy certainty and infrastructure development will be critical to unlocking large-scale deployment.

Looking Ahead

The U.S. SAF market is still in its early stages, but with clear policy direction, public-private collaboration, and innovation in feedstocks and production technologies, SAF could play a central role in achieving net-zero aviation by mid-century. For now, it remains a high-potential climate tool waiting for lift-off.