Major producers like Valero Energy, Phillips 66 and Calumet Specialty Products are retrofitting facilities to produce sustainable aviation fuel (SAF). Government incentives aimed at reducing aviation emissions are expected to support SAF production despite its higher costs and complex logistics, according to Bloomberg.
SAF is crucial for reducing airline emissions but is more expensive to produce and involves more rigorous refining compared to renewable diesel. Current SAF production yields smaller volumes and more low-value byproducts like naphtha and propane.
Diamond Green Diesel is converting half of its southeast Texas plant to SAF production, benefiting from its access to inedible animal fats and used cooking oil.
Phillips 66 has converted a San Francisco-area refinery to produce SAF and other renewables, reducing its crude-based fuel output.
Calumet is expanding SAF production at its Montana Renewables facility.
Of note: SAF currently makes up only 0.1% of global jet-fuel supplies, compared to green diesel’s 4.5% share of the diesel market. Government mandates and subsidies are seen as essential for the expansion of both fuels.
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