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JET FUEL: Competitive SAF prices Needed to Scale Market: Argus

JET FUEL

Efforts to scale up the US SAF market will hinge on the industry’s ability to narrow the price premium to conventional jet fuel, participants said at the Argus North American Biofuels, LCFS and Carbon Summit.

  • Panelists said that advancement in feedstock technology, risks mitigation for investors, and a coordinated industry effort was essential to scale up SAF in the US and abroad via cutting SAF prices.
  • Incentive programs such as Low Carbon Fuel Standard (LCFS) programs across the USWC, and the potential for expansion into other states, represent one approach to cut the gap.
  • However, panelists opposed restrictions on incentives between feedstocks as the market is too immature for complicating the incentives.
  • Furthermore, the industry will have to mitigate, but ultimately accept the inherent risks involved with such a new market. This will be key to attracting the necessary investment.
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Efforts to scale up the US SAF market will hinge on the industry’s ability to narrow the price premium to conventional jet fuel, participants said at the Argus North American Biofuels, LCFS and Carbon Summit.

  • Panelists said that advancement in feedstock technology, risks mitigation for investors, and a coordinated industry effort was essential to scale up SAF in the US and abroad via cutting SAF prices.
  • Incentive programs such as Low Carbon Fuel Standard (LCFS) programs across the USWC, and the potential for expansion into other states, represent one approach to cut the gap.
  • However, panelists opposed restrictions on incentives between feedstocks as the market is too immature for complicating the incentives.
  • Furthermore, the industry will have to mitigate, but ultimately accept the inherent risks involved with such a new market. This will be key to attracting the necessary investment.