US fuel retailers have voiced their concerns against the government’s inclusion of a tax credit for sustainable aviation fuel (SAF) in the spending bill, Reuters reported.

According to retailers, SAF is less efficient in comparison to renewable diesel and is more carbon intense.

Go deeper with GlobalData

Premium Insights

The gold standard of business intelligence.

Find out more

Related Company Profiles

View all

Under the new bill, the government plans to include a tax credit ranging from $1.25 to $1.75 per gallon of SAF, depending on the feedstock used in the production of SAF.

Retailers are concerned that the tax credit would shift vegetable oil and other renewable feedstocks to aviation, thereby impacting the supply for fuel producers who are involved in the production of renewable diesel.

The tax and climate bill aims at reducing the country’s carbon emissions by 40% by the end of this decade and cutting the budget deficit by $300bn.

See Also:

The aviation industry makes up 3% of global carbon emissions. Owing to the unavailability of alternative technologies, this industry is said to be one of the hardest to reduce emission levels.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

However, the White House aims to reduce aviation carbon emission levels by 20% by 2030.

It also plans to increase SAF production to 3 billion gallons by 2030 to meet the industry’s fuel demand, which is estimated to reach 35 billion gallons annually by 2050.    

NATSO government affairs executive vice-president David Fialkov was quoted by the news agency as saying: “SAF cannot compete with other renewable fuels on an environmental basis.” The bill is anticipated to get passed in the Senate and move to the House with the SAF credit added next week.