POET, a biofuel maker, expressed concerns that the Biden administration’s decision on tax credits for sustainable aviation fuel (SAF) could lead them to withdraw from the SAF market. The company has received significant interest in developing low-carbon projects with airlines and fuel producers in the SAF market. However, the economic feasibility of these projects is heavily dependent on the value of the tax credits proposed by the White House.
Background: Biofuel advocates have been urging the administration to establish a model that favors corn-based ethanol as a feedstock for SAF credits. Without favorable tax credits, POET may find it economically unfeasible to continue operating in the SAF sector, and political support for a more sustainable SAF policy could diminish. The Biden administration is expected to provide guidance on the tax credits in December.
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