News / Producers need investment certainty as they make decisions on SAF

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Major US air cargo players have called upon the Department of the Treasury to recognise the ‘Argonne GREET’ model as a way to provide investment certainty and match production to the growing demand for SAF. 

Last week, an open letter to Janet Yellen, department secretary, urged Congress to formally recognise the Department of Energy Argonne GREET model, saying its “ability to attract investment and build out US SAF capacity will depend on how credit eligibility and valuation is determined”. 

The GREET (greenhouse gasses, regulated emissions and energy use in technologies) model simulates the energy use and emissions output of various vehicle and fuel combinations, and was sponsored by the US Office of Energy, Efficiency and Renewable Energy. 

Currently, statutes recognise the carbon lifecycle assessment (LCA) model developed by ICAO as a method for determining SAF credit eligibility and valuation. 

But the letter, signed by more than 60 companies, including Boeing, American Airlines, Delta and Southwest, warns that “tying a US SAF credit to only one international model – in an inherently uncertain technical field – increases investment risk”. 

Recognition of the Argonne GREET model “would provide certainty for potential SAF producers as they make investment decisions, and will lead to the production of more SAF”, Southwest Airlines told The Loadstar. 

It added: “Many SAF projects are on hold or moving slowly, as potential SAF producers wait for guidance on the use of the GREET model. A favourable decision is one of several important policies that are vital if the energy and aviation industries are to achieve the SAF goals laid out in the Biden administration’s SAF Grand Challenge.” 

The letter said the default model for evaluating SAF “misses key aspects of de-carbonisation, including climate-smart and regenerative feedstock practices”, whereas Argonne GREET allows users to account for these production practices.  

It also pointed out that the Inflation Reduction Act could “unleash a new wave of US bio-innovation practices, but will not reach its full potential if those practices cannot be accounted for”. It concluded that accuracy, transparency and predictability were vital to securing private capital in a policy-driven marketplace. 

Globally, the aviation industry has called for more government involvement in the production of SAF. Arnaud Feist, CEO of Brussels Airport, said this week that “if aviation wants a future, it must be sustainable”.