SAF growth hinges on ethanol policy support

Policies must adapt to fully harness ethanol for SAF production

Ethanol is more than just a biofuel; it's a cornerstone of sustainable aviation fuel (SAF) that supports both the economy and the environment. In Illinois, where ethanol production is a major industry, the potential to expand into the SAF market is significant.

This potential is underpinned by sound policymaking, which has created a conducive environment for biofuel growth through incentives and standards like the Renewable Fuel Standard and E15 and E85 blends.

The Inflation Reduction Act introduces the “45Z credit,” providing financial incentives for SAF that substantially lowers greenhouse gas emissions. This credit is a step forward, but it also highlights the need for flexible, supportive policies that recognize the varying capabilities and practices of farms across the country.

Challenges remain in scaling up SAF production. Current policies may be too restrictive, limiting the ability of farmers to adopt practices that effectively reduce carbon footprints without disrupting their operational viability. The guidelines from the U.S. Treasury Department, for example, require demonstrating sustainable practices that may not be feasible for all.

For the ethanol and SAF markets to reach their full potential, policies must evolve. They should offer more options for farmers to meet environmental targets and allow for adjustments in farming practices year by year. This flexibility will enable farmers to adopt the most effective and sustainable methods without undue hardship.

Future policy development should also consider expanding infrastructure for ethanol and SAF, potentially adding significant economic activity and helping to meet ambitious federal production goals. This expansion is vital for maintaining the viability of the corn market and ensuring the economic sustainability of farming communities. 

The success of the SAF market driven by ethanol depends on policymaking that adapts to the needs of the environment, the market, and the farmers who are at the heart of this industry.