SkyEnergy says policy needed to support US ambition of 27B gallons of SAF by 2050

In the Netherlands, SkyEnergy says in its monthly Sustainable Aviation Fuel Market Outlook that for the US to reach a domestic SAF production capacity of 27 billion gallons – equal to 2019 jet fuel demand – the US would have to deploy around 250 SAF refineries by 2050, representing a cumulative investment opportunity of $400 billion. If jet fuel demand increases more in line with IATA forecasts, pressure on feedstock is likely to increase which could drive up SAF prices.

By 2050, Europe and the U.S. could have around 42 billion gallons of SAF capacity installed, providing over $600 billion of ESG investment opportunities.

The report presents the latest policy developments, including a provisional deal reached on ReFuelEU between the European Parliament and Council just recently, the advancements of the UK mandate discussions and the implementation of tax credits in the United States.