Despite these hurdles, there is strong demand for SAF, driven by airlines rather than regulatory requirements. The US SAF industry is exploring various feedstocks, such as used cooking oils, waste fats, and new plant-based commodities, to meet production goals. The Minnesota hub has attracted interest from project developers and partners, like DG Fuels, which plans to build a $5 billion plant in the state. However, uncertainties around federal support and logistical challenges remain significant obstacles to scaling up SAF production.
Key takeaways:
- The Pine Bend Refinery in Minnesota is set to become a major hub for sustainable aviation fuel (SAF), blending it with conventional jet fuel for use at Minneapolis–St Paul International Airport.
- The project relies heavily on financial support from federal incentives like the Inflation Reduction Act, which are currently uncertain due to political changes.
- Challenges in the SAF industry include the high cost of production, the need for new infrastructure, and the development of viable feedstocks.
- Despite these challenges, there is significant demand for SAF, and new projects and partnerships are being developed to meet this demand, including a $5 billion plant in Moorhead, Minnesota.