Still Waiting on SAF Announcement
Exxon Mobil Corp. is urging the Biden administration to establish clearer policies regarding sustainable aviation fuel (SAF) to stimulate investment and reduce emissions in the aviation sector. While the White House aims to boost production of SAF, it has faced challenges in defining rules for tax credits, particularly for crop-based forms of the fuel. The administration has delayed setting these rules due to conflicting interests from environmentalists and farmers, especially during an election year.
Exxon believes that implementing a market-driven policy would encourage innovation and incentivize profit-seeking investments in green technologies. Jack Williams, a senior vice president at Exxon, emphasized that such policies are essential for projects like the company’s Baytown hydrogen project to qualify for tax credits.
Exxon has committed over $20 billion to low-carbon technologies, including ventures such as producing renewable diesel in Alberta from crops like canola. SAF, which is derived from waste oils or agricultural feedstock, is seen as crucial for the aviation industry to achieve its goal of net zero emissions by 2050.
Various approaches are being explored to produce SAF, including using corn-based ethanol or integrating captured carbon in refining processes. Exxon is evaluating potential SAF projects, with a particular focus on locations like Joliet, Illinois, where the company operates a refinery.
Get market insights and news from Pro Farmer that's not available online - view subscription options.
