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Supply Ramp Up Major Concern for SAF Adoption

JET FUEL

Dozens of SAF production plants are expected to come online in the next few years, but the outlook for sources of the alternative jet fuel are uncertain, Bloomberg said.

  • Diamond Green Diesel, a Valero- Darling Ingredients joint venture expects its Texas plant to come online this year and have a SAF capacity of up to 235m gal/y (~715k mtpa).
  • However, other anticipated sources of SAF have floundered, raising concerns for long-term supply.
  • Output will have to ramp up if airlines can meet pledged or mandatory quotas, with most airlines still on a trajectory lagging their targets.
  • “Supply remains limited and has not reached economies of scale, making it cost prohibitive for wide adoption,” a UPS spokesman said.
  • Fulcrum BioEnergy had raised $1 billion to convert municipal waste into biofuels like SAF. However, it has halted operations since May, raising doubts over its plants in Nevada, Indiana, Texas, and the UK.

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