The development of sustainable aviation fuel (SAF) in the US hinges on which lifecycle assessment (LCA) model will be adopted by the US Treasury Department to calculate the emissions reductions of SAF. The outcome will determine the value of lucrative tax credits earned by SAF, as well as the eligibility of alcohol-to-jet pathways.
To be eligible for the 45Z Clean Fuel Production Credit (CFPC), the IRA stipulates SAF must reduce greenhouse gas (GHG) emissions by 50% in accordance with the CORSIA model, or “any similar methodology”, leaving the door open for alternatives.
Stakeholders and policymakers alike have urged the US Treasury to adopt the Greenhouse Gases, Regulated Emissions, and Energy Use in Transportation (GREET) model developed by the Department of Energy’s Argonne National Laboratory to determine credit eligibility for SAF.
The momentum of support behind the adoption of the GREET model has built rapidly since this summer and seems to have reached a crescendo this month as the deadline for year-end guidance looms.