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Senators to IRS: Block plastic-based fuels from IRA tax credits

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By Erin Voegele

November 28, 2023

PolicyBusinessSustainable Aviation FuelsFeedstocks

Sen. Jeff Merkley, D-Ore., and five of his colleagues are urging the IRS to ensure that fuels made from petroleum products, specifically plastic feedstocks, are unable to qualify for the IRA’s SAF and clean fuels production tax credits.

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Phillips 66 has confirmed the renewables conversion of its refinery in Rodeo, California, is progressing on schedule with startup expected in Q1 2024. Once fully operational, the facility will have the capacity to produce 800 MMgy of renewable fuels.

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SAF reduces the number of ultrafine particles that are emitted from the aircraft engines, thereby improving air quality. This is one of the conclusions drawn from a large-scale international study using a SAS aircraft at Copenhagen Airport.

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Valero Energy Corp. released Q3 financial results on Oct. 26, reporting significantly higher earnings and production volumes for its ethanol segment. Renewable diesel sales volumes were also up and the company’s SAF project remains on schedule.

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Neste Corp. released third quarter financial results on Oct. 26, reporting a 40 percent increase in comparable EBITDA for its Renewable Products segment. Margins and sales volumes for renewable diesel and SAF were also up.

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Farnborough Airport, the home of British aviation and Europe’s leading airport for premium air travel connectivity, on Oct. 25 announced the sale of its millionth liter of SAF. The airport began offering SAF to its customers in 2021.

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OMV and Ryanair on Oct. 19 announced the signing of an offtake agreement to supply 500 metric tons of sustainable aviation fuel (SAF) at Vienna Airport in 2023. The agreement will save over 1,250 metric tons in CO2 emissions .

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Cebu Pacific, the Philippines' leading airline, has signed a memorandum of understanding (MOU) with Neste, the world’s leading producer of sustainable aviation fuel (SAF), to explore the supply and purchase of SAF in Asia Pacific.

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Rolls-Royce on Oct. 18 announced the successful completion of a series of tests with 100 percent sustainable aviation fuel (SAF) on its latest generation of business aviation engines, the Pearl 15 and the Pearl 10X.

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Embraer on Oct. 15 announced it has successfully tested the Phenom 300E and Praetor 600 on 100 percent neat sustainable aviation fuel (SAF). SAF for the testing was provided by World Fuel and used to fuel one engine.

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Nearly 1.95 billion RINs were generated under the RFS in September, up from 1.73 billion generated during the same month of 2022, according to data released by the U.S. EPA. Total RIN generation for the first nine months of 2023 was at 17.41 billion.

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DHL Express and World Energy have signed a long-term strategic agreement to accelerate the decarbonization of aviation logistics through the purchase of approximately 668 million liters of SAF via sustainable aviation fuel certificates (SAFc).

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Emirates and Neste have expanded their partnership by solidifying their collaboration for the supply of over 3 million gallons of blended Neste MY Sustainable Aviation Fuel in 2024 and 2025. The SAF will be supplied over the course of 2024 and 2025.

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Avfuel Corp. is launching its Avfuel Zero, a program that aims to help flight operators create tailored emissions reduction plans by leveraging a wide array of sustainable solutions, including SAF, book and claim for SAF, and carbon credits.

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Boeing is partnering with NASA and United Airlines for in-flight testing to measure how sustainable aviation fuel (SAF) affects contrails and non-carbon emissions, in addition to reducing the fuel's life cycle climate impact.

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Neste, ISCC and DHL Group have joined forces to pioneer and test a system through which airlines, logistics service providers and end customers such as corporates can credibly report the emission reduction achieved by using SAF.

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Aircraft flying into Las Vegas’ three airports for the 2023 National Business Aviation Association Business Aviation Convention & Exhibition will have an opportunity to fuel up with sustainable aviation fuel (SAF).

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The Council of the European Union on Oct. 9 adopted regulations for the ReFuelEU initiative. The new law aims to boost both the demand for and supply of sustainable aviation fuel (SAF) within the European Union.

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Technip Energies on Oct. 5 announced it has been awarded engineering, procurement services and construction management (EPsCm) contracts by Galp for a SAF, renewable diesel and green hydrogen project under development in Portugal.

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Abu Dhabi Future Energy Company PJSC – Masdar, a global leader in green hydrogen, is teaming up with aerospace company Boeing to propel the sustainable aviation fuel (SAF) industry in the United Arab Emirates and globally.

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Airbus has joined Japan’s “ACT FOR SKY,” a voluntary organization that works to commercialize, promote, and expand the use of locally produced SAF. Airbus will contribute technical information and cooperate on research and technology activities.

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SAF producer World Energy has announced a long-term agreement with Microsoft to accelerate the decarbonization of corporate air travel and its supply chain cargo through the purchase of sustainable aviation fuel certificates (SAFc).  

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Yield10 Bioscience Inc. announced that the harvest of a majority of the winter and spring camelina grain produced under grower contracts in 2022/2023 has been completed and the company is generating revenue from feedstock delivery.

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Emirates has announced an agreement with Shell Aviation for the supply of over 300,000 gallons of blended SAF for use at the airline’s international hub in Dubai. The first SAF delivery under the agreement is expected to commence this year.

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ADM and Syngenta Group have signed an MOU to collaborate in scaling research and commercialization of low carbon-intensity next-generation oilseeds and improved varieties to help meet skyrocketing demand for biofuels and sustainably sourced products.

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OMV on Sept. 18 announced that it has signed an offtake agreement to supply 2,000 metric tons of sustainable aviation fuel (SAF) to the Air France-KLM Group in 2023. This offtake agreement follows an existing MOU between the companies.

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Neste has expanded its capability to supply renewable fuels to customers on the West Coast of the U.S. in cooperation with Vopak. The company commissioned terminal capacity at Vopak’s Los Angeles terminal for storing SAF and renewable diesel.

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Evident on Sept. 21 announced that World Energy has become the first user of its new, international global standard for SAF. The certification scheme, named Fly-i, will work in a similar way to the procurement of RECs.

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The U.S. DOE has released a RFI to better understand the challenges facing critical elements within SAF supply chains. The agency is specifically seeking input from industry, academia, research laboratories, government agencies, and stakeholders.

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LanzaJet and Technip Energies on Sept. 19 announced an agreement to strengthen their exclusive collaboration to support the global deployment of the LanzaJet Alcohol-to-Jet (ATJ) Process technology for the production of SAF.

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