ON THE HORIZON
Potential Markets for Renewable Naphtha PAGE 18
Comstock Fuels’ Path to Woody Biomass-Based SAF
PAGE 14
Pathways for Ramping Up Production
PAGE 28
Manufacturers of the VIBRAPRO™ line of vibrator y conveyors. Works in conjunction with the SMART™ system. Designed to sort, seperate and move bulky materials from receiving stage to distribution.
Take the RISK out of your projects.
A start up project has lots of components from financing, locating equipment and contractors, and managing the day to day operations.
BE&E o ers complete construction management ser vices to take the risk out of this process. We have prequalified vendors and two decades of experience in the biomass bulk handling sector. Keep your project on track with a supplier that will take you from planning to startup.
Comstock Fuels is at the forefront of commercializing
Caitlin Scheresky
The Ins and Outs of Renewable Naphtha
There are different market options for renewable naphtha, both as a SAF byproduct and coproduct. By Katie Schroeder
The 2025 Clean Fuels Conference included discussions regarding state of the industry, progress and challenges, and operating under the new administration.
Whether 45Z can be the motivating factor to help incentivize growth for the SAF industry still remains to be seen and is clouded by unknowns..
Ramping Up SAF Production: From Raw Material Collection to Innovative Pathways
There are some promising ways to ramp up SAF production from a technical perspective. By Pratik Chandhoke
Anna Simet EDITOR asimet@bbiinternational.com
A Waiting Game
Policy uncertainty is swirling right now, and I’m looking forward to the International Biomass Conference & Expo in just a few weeks, where industry leaders will, as oxymoronic as it sounds, discuss the unknowns. Perhaps by then they will have a little more insight than they do right now (the end of February), but that is far from a guarantee. In the meantime, we’ve included some expert commentary on the guidance, or lack thereof, released thus far regarding the 45Z Clean Fuels Production Credit and the 45ZCF-GREET model.
In “Delayed Arrival for 45Z Tax Credit Guidance” on page 8, Paul Winters, director of public affairs and federal communications at Clean Fuels Alliance America, discusses the Treasury’s recent notice of intent to propose regulations, which he says, “falls short of the technology-neutral promise, yielding unequal impacts among fuel producers,” and also points out the shortcomings of the new GREET model criteria. While Treasury is taking public comments on the notices and is likely to make changes to the original proposal, as Winters points out, there are likely to be continued delays as the new administration takes shape.
Also on 45Z, we have a contribution article by Jordan Godwin, director of biofuels markets at OPIS, that includes some industry perspective regarding what has transpired and how it might impact U.S. SAF Grand Challenge goals, as well as what OPIS has seen Low Carbon Fuel Standard credit and renewable identification number (RIN) prices do since release of the 45Z guidance. “For SAF to really start taking off in 2025,” Godwin says, “it’s going to need more help from RINs and LCFS credits beyond the 45Z credit.”
Policy uncertainty is front and center right now, and all the industry can do is advocate, comment and wait, and speculate on the impacts any shortcomings, changes or delays might have on progress. As one industry expert said to me today, in light of all of the above, “The SAF industry is happening. The real questions are, at what pace will it be able to build out, and will goals be met?”
ANNA SIMET Editor, SAF Magazine
EDITORIAL
DIRECTOR OF CONTENT & SENIOR EDITOR
Anna Simet | asimet@bbiinternational.com
SENIOR NEWS EDITOR
Erin Voegele | evoegele@bbiinternational.com
CONTRIBUTIONS EDITOR
Katie Schroeder | katie.schroeder@bbiinternational.com
JUNIOR STAFF WRITER
Caitlin Scheresky | caitlin.scheresky@bbiinternational.com
MAP DATA & CONTENT COORDINATOR
Chloe Piekkola | chloe.piekkola@bbiinternational.com
DESIGN
VICE PRESIDENT, PRODUCTION & DESIGN
Jaci Satterlund | jsatterlund@bbiinternational.com
GRAPHIC DESIGNER
Raquel Boushee | rboushee@bbiinternational.com
PUBLISHING & SALES
CEO
Joe Bryan | jbryan@bbiinternational.com
PRESIDENT
Tom Bryan | tbryan@bbiinternational.com
CHIEF OPERATING OFFICER
John Nelson | jnelson@bbiinternational.com
DIRECTOR OF SALES
Chip Shereck | cshereck@bbiinternational.com
ACCOUNT MANAGER
Bob Brown | bbrown@bbiinternational.com
CIRCULATION MANAGER
Jessica Tiller | jtiller@bbiinternational.com
SENIOR MARKETING & ADVERTISING MANAGER
Marla DeFoe | mdefoe@bbiinternational.com
2025 Carbon Capture & Storage Summit
JUNE 9-11, 2025
Chi Health Center | Omaha, NE
Capturing and storing carbon dioxide in underground wells has the potential to become the most consequential technological deployment in the history of the broader biofuels industry. Deploying effective carbon capture and storage at biofuels plants will cement ethanol and biodiesel as the lowest carbon liquid fuels commercially available in the marketplace. The Carbon Capture & Storage Summit will offer attendees a comprehensive look at the economics of carbon capture and storage, the infrastructure required to make it possible and the financial and marketplace impacts to participating producers.. (866) 746-8385 | www.fuelethanolworkshop.com
2025 Sustainable Fuels Summit
JUNE 9-11, 2025
Chi Health Center | Omaha, NE
The Sustainable Fuels Summit: SAF, Renewable Diesel and Biodiesel is a premier forum designed for producers of biodiesel, renewable diesel, and sustainable aviation fuel (SAF) to learn about cuttingedge process technologies, innovative techniques, and equipment to optimize existing production. Attendees will discover efficiencies that save money while increasing throughput and fuel quality. Produced by Biodiesel Magazine and SAF Magazine, this worldclass event features premium content from technology providers, equipment vendors, consultants, engineers, and producers to advance discussions and foster an environment of collaboration and networking. Through engaging presentations, fruitful discussions and compelling exhibitions, the summit aims to push the biomass-based diesel sector beyond its current limitations. Co-located with the International Fuel Ethanol Workshop & Expo, the Sustainable Fuels Summit conveniently harnesses the full potential of the integrated biofuels industries while providing a laserlike focus on processing methods that deliver tangible advantages to producers. Registration is free of charge for all employees of current biodiesel, renewable diesel and SAF production facilities, from operators and maintenance personnel to board members and executives.
(866) 746-8385 | www.sustainablefuelssummit.com
2025 North American SAF Conference & Expo
SEPTEMBER 22-24, 2025
Minneapolis Convention Center | Minneapolis, Minnesota
Serving the Global Sustainable Aviation Fuel Industry Taking place in September, the North American SAF Conference & Expo, produced by SAF Magazine, in collaboration with the Commercial Aviation Alternative Fuels Initiative (CAAFI) will showcase the latest strategies for aviation fuel decarbonization, solutions for key industry challenges, and highlight the current opportunities for airlines, corporations and fuel producers.
(866) 746-8385 | www.safconference.com
SAF Magazine News |
New Rise Renewables commences SAF production
XCF Global Capital Inc. on Feb. 24 announced that New Rise Renewables LLC has commenced production of neat sustainable aviation fuel (SAF). The company has also entered into an irrevocable corporate purchase order for the sale of more than 3 million gallons of neat SAF with a third-party buyer. The
CoBank Predicts 3.6% Decline in Planted Soybean Acreage for 2025
CoBank is predicting planted soybean acreage for 2025 will decline by 3.6% this year, falling to 84 million acres, according to the company’s spring acreage outlook report, which was released Feb. 20.
If realized, the 84 million acres of soybeans currently expected to be planted for 2025 will be down compared to the 87.1 million in planted acreage reported for 2024, but up slightly from the 83.6 million acres of soybeans planted in 2023.
While soybeans are expected to experience the biggest dip in acreage nationwide, CoBank said the loss will be somewhat blunted by last fall’s expansion of winter wheat acres, which will create more opportunity for farmers to double-crop soybeans behind the winter wheat harvest.
Within the report, CoBank stresses that the planting season is still weeks away, meaning the acreage balance is still in flux. Multiple factors could impact planting decisions. For soybeans, those factors include tariffs on imports of used cooking oil from China and potential tariffs on Canadian canola oil, which would lift demand for soybean oil and encourage farmers to hold on to soybean acres.
EPA: 1.76 Billion RINs Generated in January
More than 1.76 billion renewable identification numbers (RINs) were generated under the Renewable Fuel Standard in January, down from 1.91 billion generated during the same period of 2024, according to data released by the U.S. Environmental Protection Agency on Feb. 20.
More than 485.99 million D4 biomass-based diesel RINs were generated in January, including 356.71 million generated for nonester renewable diesel by domestic producers, 98.38 million generated for biodiesel by domestic producers, 13.56 million generated for renewable jet fuel by domestic producers, 12.64 million
first shipments are SAF are expected to begin this month, with delivery anticipated in early March.
New Rise Renewables in April 2024 announced that work was underway to convert its existing renewable diesel plant located near Reno, Nevada, to SAF production. According to the company’s website, the facility currently has the capacity to produce 3,000 barrels per day (46.02 MMgy) of synthetic blending component to make SAF.
The 3,200-barrel-per-day (49.06 MMgy) renewable diesel plant originally began operations in mid-2022. The facility is situated on a 10-acre parcel at the Reno-Tahoe Industrial Complex in Storey County, Nevada. The project site includes a 16-car heated rail spur, more than 5 million gallons of tankage, cogeneration, off-gas energy recovery, water recovery, and cutting-edge technologies for hydrotreating, hydrogen reformer, feedstock pretreatment and wastewater treatment, according to the company.
generated for renewable jet fuel by foreign entities, and 4.7 million generated for biodiesel by importers.
Nearly 20.48 million D5 advanced biofuel RINs were generated during the first month of 2025, including 11.48 million generated for naphtha by domestic producers, 6.31 million generated for nonester renewable diesel by domestic producers, 2.32 million generated for ethanol by domestic producers, 337,767 generated for renewable heating oil by domestic producers, 21,107 generated for RNG by domestic producers, and 14,085 generated for compressed RNG by domestic producers.
According to the EPA, 28,782 D7 cellulosic diesel RINs were generated in January, all for cellulosic heating oil by importers.
Montana Renewables’ $1.44 Billion DOE Loan Guarantee Approved by Trump Administration
Calumet Inc. on Feb. 12 reported that the Trump administration has successfully completed the “tactical” review of the $1.44 billion U.S. Department of Energy loan guarantee to support expanded sustainable aviation fuel (SAF) production its Montana Renewables facility. The funding process has now resumed.
Montana Renewables has been working to expand SAF production through what it calls its MaxSAF initiative for several years. The initiative aims to boost SAF production at the company’s biorefinery from the current capacity of 50 MMgy to 150 MMgy by 2026 and 300 MMgy during the following two years. The company completed the extensive DOE loan guarantee application process last year, with the DOE issuing a conditional commitment in October 2024. Calumet closed on the $1.44 billion loan guarantee on Jan. 10. The first tranche of approximately $782 million was scheduled to be disbursed on Jan. 28.
Calumet on Jan. 28 issued a statement that the first tranche of funding “will undergo a tactical delay to confirm alignment with White House priorities.” The company said it had been informed “the delay should be days or weeks.”
The New Rise Renewables SAF plant in Reno, Nevada, is now operational.
IMAGE: NEW RISE RENEWABLES
In a document submitted to the U.S. Security and Exchange Commission on Feb. 12, Calumet said it has been informed by the DOE’s Loan Program Office that the review has been successfully completed. The funding process has resumed, with the first tranche of approximately $782 million expected to be completed during the week of Feb. 17.
Neste Reports Increased SAF Sales Despite Challenging Renewables Market
Neste Corp. on Feb. 13 released fourth quarter financial results, reporting that its renewables segment was impacted by both market and operational challenges during the three-month period. Sustainable aviation fuel (SAF) sales, however, were up.
Heikki Malinen, president and CEO of Neste, explained the renewables segment was negatively impacted by new competitors and increased production capacity. “While there are regional differences, this global overcapacity resulted in a decline in renewable fuel sales prices and intensified demand for waste and residue raw materials,” he said. “In addition, the weakening fossil diesel price had a further negative impact on the renewable products' sales prices. Consequently, sales margins fell significantly below previous years’ levels.”
Malinen also said Neste’s renewable refineries faced operational challenges last year. While the company has tackled those challenges, he noted they had a negative impact on renewable diesel production and sales, particularly during the fourth quarter. “In Neste’s current situation, it is obvious that a change of direc-
tion is needed,” Malinen said. “Shortly after I took over as CEO, we launched a groupwide, comprehensive full potential analysis. This work has now been completed, and we have today launched a performance improvement program. The goal is to enhance Neste’s financial performance while securing our strong market position with better cost competitiveness in renewable fuels. There is no single silver bullet to improve our financial and operative performance. Instead, we need to take steps on many fronts, and this work has already started. The planned efficiency measures have personnel impacts and are thus especially difficult for our employees, but at the same time necessary to ensure Neste’s long-term competitiveness and success.”
Neste's fourth quarter comparable sales margin for renewables was $242 per ton, down from $813 per ton during the same period of 2023. For the full year 2024, the comparable sales margin for renewables was $377 per ton, down from $863 per ton the previous year.
Sales volumes were at 926,000 tons during the fourth quarter, up from 870,000 tons during the same period of the previous year. SAF accounted for 195,000 tons of fourth quarter sales, up from 40,000 tons. During the fourth quarter, approximately 53% of volumes were sold into the European market, with 47% sold to North America, compared to 61% and 39%, respectively, during the same period of 2023. The share of waste and residue inputs was 90% of total renewable materials inputs in 2024, compared to 92% in 2023.
Stage 1: In-line Ra ma n analysis of fe edstocks
Stage 2: In proces s Ra ma n measurement thro ughou t gasificat io n, compre ssio n, clean up, fe rmentation and separation
Stage 3: Final product quality measurement
(A PI, densit y, fl as h point, freeze point, initial BP, T10, T5 0, T9 0)
Th e small, ve rs atile Ma rq Metr ix All-In-O ne Proces s Ra ma n Analyzer provides data in seconds, ca n ru n multiple te st methods, has minimal mainte nance with no moving parts, an d has sc alable models that transfer seamlessly betwee n instrume nts.
Paul Winters Director, Public Affairs and Federal Communications
Delayed Arrival for 45Z Tax Credit Guidance
The new Clean Fuel Production Credit (Section 45Z of the Internal Revenue Code) is intended to be a technology-neutral incentive for U.S. production of renewable fuels. Low-carbon fuel producers of biodiesel, renewable natural gas, hydrogen, sustainable aviation fuel (SAF) and others are eligible. The value of the credit is based on the calculated emissions rates at each production facility. Unfortunately, the overdue, incomplete “Notice of Intent to Propose Regulations” that Treasury issued in January 2025 falls short of the technology-neutral promise, yielding unequal impacts among fuel producers.
Treasury’s delay particularly hurt biodiesel and renewable diesel producers. Feedstock suppliers, fuel producers and their customers typically negotiate feedstock and fuel offtake agreements at least three months in advance, distributing the value of tax credits between all parties. Without available guidance on the value of the 45Z credit during the final quarter of 2024, many companies simply couldn’t put agreements in place for the first months of 2025.
The devastating impact of the uncertainty is now apparent. According to EPA data, domestic biodiesel production in January 2025 was at the lowest monthly level in the past five years. U.S. renewable diesel production in January fell 17% below the average monthly production in 2024. SAF production (both domestic and foreign), by contrast, continued to ramp up. Imports and foreign production of biodiesel and renewable diesel came to a near halt for the month.
Getting back to business is crucial for biodiesel and renewable diesel producers. According to the U.S. Energy Information Administration, biodiesel and renewable diesel are meeting 9% of U.S. demand for distillate fuels—the on-road diesel that powers heavy-duty transportation of goods across the nation. Demand for clean fuels is growing in new markets, and not just aviation but also rail, shipping, construction and heating.
For some domestic producers, the pieces are now in place to claim the new 45Z credit. In May 2024, the Internal Revenue Service issued registration requirements and urged producers to complete the process before the 45Z credit’s start date on January 1. The IRS also finalized the instructions and paperwork (Form 7218) for claiming the credit as part of income or information returns. Similarly, the IRS finalized rules for monetizing the credit by transferring it to a third party in exchange for cash.
Additionally, this past January, Treasury and the Department of Energy published guidance and a new 45ZCF-GREET model for calculating emissions rates. This new model enables nonaviation fuel producers to calculate the value of the tax credit. SAF producers can continue to use the International Civil Aviation Organization’s Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA), or the 45ZCF-GREET model. All current U.S. SAF producers are CORSIA certified.
At the end of January, Treasury published its notices of intended regulations and emissions rates in the Internal Revenue Bulletin. This bulletin guides IRS agents across the country and ensures uniform application of rules, even retroactively to the start of the year. While the publication is not the same as a finalized regulation, taxpayers can still rely on it as a precedent in calculating and claiming the credit.
Other fuel producers may not have the certainty they need to claim the 45Z credit. The 45ZCF-GREET model includes a narrow list of feedstocks, fuels and production methods. Treasury did not establish a method for producers to obtain a provisional emissions rate for fuels and feedstocks that aren’t currently included in the model. And some fuels qualify for limited or no tax incentive because they don’t meet the lifecycle carbon threshold score. Treasury and the USDA did not finalize a promised method for improving feedstock carbon scores through farm conservation practices.
Treasury is taking public comment on its January notices. The agency is likely to make changes to the original proposal but is also likely to experience continued delays as the new administration takes shape. Congress may also consider changes to the credit as it reevaluates tax policy this year.
Shortfalls in biodiesel and renewable diesel production would take a significant bite out of an essential U.S. energy supply, impacting the price of nearly every consumer good shipped across the country. Policy stability is crucial to resume industry growth, reestablish parity among fuels and feedstocks, incentivize new technologies, and meet increasing demand in new markets. Clean Fuels is working with producers and feedstock suppliers to ensure that the credit works for all industry stakeholders going forward.
*Data based on projections from operational, expanding, under construction, and proposed facilities
Created by Chloe Piekkola, Map Data & Content Coordinator, BBI International
September 22-24, 2025 Minneapolis Convention Center Minneapolis, MN
SAF Magazine, in collaboration with the Commercial Aviation Alternative Fuels Initiative (CAAFI) will showcase the latest strategies for aviation fuel decarbonization, solutions for key industry challenges, and highlight the current opportunities for airlines, corporations and fuel producers.
The North American SAF Conference & Expo is designed to promote the d evelopment and adoption of practical solutions to produce SAF and decarbonize the aviation sector. Exhibitors will connect with attendees and showcase the latest technologies and services currently offered within the industry.
SILVER TO SAF
With the U.S.-established SAF Grand Challenge’s 2030 deadline quickly approaching, Comstock Fuels is ready to answer the call.
BY CAITLIN SCHERESKY
Comstock Inc., a legacy gold and silver mining company based out of Nevada, began pursuing investments into early stage decarbonization technologies in 2017. Fastforward to 2025, and the company's subsidiary, Comstock Fuels Corp., is leading the way to woody feedstock-produced liquid renewable fuels by utilizing its revolutionary conversion technology. “Not only are we a producer, but we’re also a technologist,” says Comstock Fuels Director of Business Development Chad Michael Black. “We are the technology that enables the woody biomass to be converted into renewable fuels.” On that list, Black says, is sustainable aviation fuel (SAF).
Far from an overnight success, the foundational patents crucial to Comstock Fuels’ technology and processes were initially filed in 2013, Black says. “There were three companies that were acquired in 2021, so since that time, we’ve been further perfecting the artwork on the patent to go all the way to liquid fuels,” he explains.
The Comstock Legacy
Comstock Mining was established in 2003 in Nevada, focused on the Historic Comstock District. The District’s legacy dates back to 1859, when over 8 million ounces of gold and nearly 200 million ounces of silver were discovered and mined from 1860-1880. Named the Comstock Lode, the
strikes of silver and gold “stretched from Virginia City to Gold Hill to Silver City," roughly two and a half miles, says the Nevada State Historic Preservation Office.
In 2010, Corrado De Gasperis was inducted into his role as Comstock Inc.’s CEO, and in 2015, he added on the title of executive chairman. Quickly after, with the support of the company board, Comstock began its investments in renewable energy. “In roughly 2017 ... the board made the decision to invest in early-stage decarbonizing technologies, with one of those technologies now being the wood-to-fuel technology that forms Comstock Fuels Corporation today,” Black says.
Today, Comstock Fuels’ technology rivals that of Earth’s natural hydrocarbon formation process. “Our process, it accelerates that process. So, what takes Mother Nature millions of years to create crude oil from organic matter, our process can convert in hours,” Black says.
The key to this is feedstock availability, Black explains. “The current constraint inside the system is feedstock availability, right? Our technology unblocks that constraint; we utilize woody biomass. Terrestrial biomass makes up roughly 80% of the world’s vegetation, so it’s an abundant supply of feedstock,” he says.
An Evolution Revolution
There are four key steps to Comstock Fuels’ production process. “The front-end component is separation; that’s pulping and
digestion—no different than any pulp and paper facility,” Black explains. “They use sodium sulfate as a solvent; we use butanol as a solvent. That’s the only difference.
“The second step is fermentation— that’s ethanol,” Black says. “The third step is esterification, or fat splitting, creating an ester—that’s biodiesel. And then the fourth step is hydrotreating, which is done at both renewable fuel and petroleum refineries around the world,” he says.
“Because we’re using woody biomass as source material, we have best-in-class carbon intensity (CI) scores, so our finished fuel is around a 15 [CI], prior to any type of green energy, carbon sequestration,” Black continues. “And it’s extremely high yielding. We’re pushing upwards of 140 gasoline gallon equivalents (GGE) ... that's almost double our known competitor from a technology perspective.”
This low-carbon, high-yielding technology is used to access lignin. “Historically, this separation-first mentality, you’ll see other technologies that can claim this cellulose fraction [50%],” says Black. “We take our pulp, we enzymatically convert it into sugar, and then we ferment it into cellulosic ethanol. That ethanol can be converted into SAF, given a number of dehydrating technologies that exist today.”
Black says that Comstock Fuels' claim to fame is going after the other 50% of the tree—the remaining hemicellulose and lignin. “When these two products combine with the butanol in our front-end digestion,
they form a unique blend of hydrocarbons that we call bioleum,” he explains. “Bioleum is suitable, with further treatment, to be a drop-in feedstock for both renewable fuel and petroleum refineries for coprocessing ... When it’s in its biointermediate states, its called bioleum oil, about 18% oxygen, 15 TAN (total acidic number).”
“We also found with a little refinement, we can get that oxygen content down to about one percent,” Black continues. “That bioleum fraction, predominantly SAF range,
Comstock Fuels’ laboratory and pilot plant operation in Wausau, Wisconsin, is home to its ongoing technology development, optimization, integration and demonstration activities.
IMAGE: COMSTOCK FUELS
about 60-70% of the byproduct of the HBO, the hydrodeoxygenated bioleum oil—is sustainable aviation fuel by ASTM standards.”
Despite its advanced results and integrated processes, Comstock Fuels’ technology components primarily use off-the-shelf equipment. “We have a legacy dating back to 2003 with investments in and around lignin conversion technologies. Our front-end
system uses an organosolv-separation digestion phase,” Black explains.
The solution: Swedish company RenFuel’s exclusively licensed esterification technology. “It takes any lipid—fat, oil and grease—such as our crude bioleum, mixes it at about a 0.7 to one ratio of fats to bioleum, and then creates a lignin ester, the bioleum oil. Now we have a suitable feedstock
to drop in at renewable fuel refineries. That product is geared toward a 100% drop-in sustainable aviation fuel,” he says.
“Today, aviation fuel cannot be dropped in neat; it has to be blended to meet ASTM specs ... and the reason is because the aromatics are normally removed in the process,” Black explains. “Our process keeps the aromatics, so in theory, if there was a pathway approved for 100% drop-in SAF, we would be first to qualify because the aromatics remain in our process.”
Making the Market
As for its most recent news, Comstock Fuels recently scored a $14 million investment from Marathon Petroleum. Financing is a major roadblock that inhibits many industry hopefuls from finding success. “If you wanted to constantly apply for grants and go from benchtop scale to pilot scale, through commercial demonstration and full biorefinery with the USDA or the U.S.
Comstock Fuels' pilot plant has over 4,000 operating hours, confirming process yields of close to 140 gasoline gallon equivalents.
DOE—there’s a pathway for that, and it’s about a 25-year process," Black says. "So, it’s not practical. The deal we recognize is that to meet the grand SAF challenge by 2030, there needs to be $50 billion in capital placed into steel today.”
Despite this gap, Comstock is confident it can play a notable role in meeting the U.S. Grand SAF Challenge, as well as an internal goal of its own: owning and operating 10 facilities in the next 10 years. Alongside several nationwide scouted states, Black cites three licensees in Australia and one licensee each in New Zealand, Vietnam, Pakistan and three more international sites on the move.
These sites, above all, require space, water and access to feedstock. Colby Korsun, Comstock Fuels’ site development manager, points to a required 100-200 acres of space, 200,000-250,000 gallons of water on the supply side and 400,000500,000 gallons of water on the disposal
side, both needing the ability to be scaled up by 10 in five years, and 5-10 megawatts (MW) to be scaled up to 50-75 MW in five years, among other requirements. Feedstock in range is also a desirable trait in a potential site. To remedy this, Comstock has contracted Hexas Biomass Inc. for its energy crop, XanoGrass, which Comstock has exclusive access to, except for certain preexisting agreements.
Comstock’s products and technologies apply to several markets, including SAF, the U.S. transportation system and mining. “There’s a major demand in the SAF arena to be able to decarbonize to lower transportation carbonization rates by 2030 and 2050,” Black explains. “What we’re able to do is incentivize whole countries into becoming energy independent ... our technology allows them to tap into terrestrial biomass, which again, is roughly 80% of vegetation that grows around the world.”
This technology and the ability to convert woody biomass as well as purposegrown energy crops allows the company to control its own destiny, Black says.
When it comes to competition, from Black's perspective, nobody really benefits. “We want to enable an industry of SAF," he says. "One point of contention that a lot of early adopters want is exclusivity for the technology, and that’s something that we’ve never allowed in the system.
“Right now, the missing link is that everyone’s doing it in their own vacuum,” Black adds. “Where collectively, we don’t believe in competition .... from the technology perspective, it hurts the industry every time something doesn’t work. We love our technology, but we want everyone to gain success.”
Author: Caitlin Scheresky caitlin.scheresky@bbiinternational.com
THE INS AND OUTS OF NAPHTHA
There are different market options for renewable naphtha, both as a SAF byproduct and coproduct.
BY KATIE SCHROEDER
Renewable naphtha is an expected derivative from producing renewable diesel (RD) and sustainable aviation fuel (SAF). Fuel refiners have been finding uses for this byproduct for decades, primarily as a blend stock with gasoline, and the renewable fuels space is no exception. Now, renewable naphtha is positioned with the potential to be used as a feedstock for plastics, hydrogen and other fuels.
Located in Great Falls, Montana, Montana Renewables got its start in 2020 and began production of renewable diesel in 2022, followed by SAF in 2023. The facility produces 200 MMgy of renewable diesel and 30 MMgy of SAF, as well as roughly 10 MMgy of renewable naphtha derived from renewable feedstocks, including vegetable oils and waste inputs such as used cooking oil, animal fats and corn oil. “The target molecules, of course, are the diesel and the sustainable aviation fuel, which almost as they come out of the unit are fit for purpose to go into the diesel and jet fuel markets,” says Michael Wojciechowski, director of commercial optimization and compliance with Montana Renewables.
For World Energy, the focus is primarily on SAF production. Its Paramount, California, facility produces SAF and sends
its naphtha to the fuels market. Joe Ran, vice president of business development and innovation at World Energy, explains that the company works to offer its corporate customers low-carbon solutions to assist them in meeting emissions reduction goals across their supply chains by supporting the expansion of renewable biofuels in hard-to-abate sectors such as aviation. “When we’re intentionally making SAF, there will be some residual renewable diesel, and there will be renewable naphtha as a byproduct,” Ran says.
Understanding the Chemistry
Montana Renewables uses the hydrotreated esters and fatty acids (HEFA) process to produce its RD and SAF. Wojciechowski explains that the process breaks down triglycerides—made up of a propane molecule plus three diesel molecules—and separates the propane molecule, leaving molecules to make diesel and SAF. In the process, some of those molecules will break apart due to the chemistry, making slightly shorter-chain molecules: naphtha. This fuel has roughly 2%-3% lower energy density than RD or SAF. The fuels produced through the HEFA process are typically all given the same carbon intensity (CI) score—around 35 points is normal for Montana Renewables, according to Wojciechowski.
“Renewable naphtha is paraffinic, meaning that it is a long-chain molecule
with little to no carbon chains branching off,” explains Henrik Rasmussen, managing director and senior VP of the Americas for Topsoe. Topsoe’s HydroFlex technology utilizes the HEFA process to transform fats, oils and greases into RD, SAF and naphtha. Typically, naphtha is a byproduct of producing SAF and RD; however, the technology could be used to make 100% renewable naphtha if the customer so desires. “Up until this moment, we never had anyone come and ask us for that, but if they did, we could do that,” he says. “As a matter of fact, it’s easier to make naphtha than to make diesel and jet. You have to be very selective when you’re making jet and diesel, but if you just want naphtha, you could just crack the jet and diesel and make a large amount of naphtha.”
Three main factors impact how much SAF and RD are produced as well as the naphtha yield, according to Wojciechowski. The first factor is the type of feedstock being sent into the process; each feedstock has a predisposition to produce more or less of each output. Secondly, the technology being used in the process also plays a role. The temperature, pressure and catalytic chemistry all have an impact. Finally, the severity of the process increases the amount of naphtha produced, he explains. “The reason for more severity is to try to make more sustainable aviation fuel,” Wojciechowski says. “The more you try to make sustainable aviation fuel out
of the diesel, you will break more of these molecules into naphtha.”
Similarly, Rasmussen explains that producing low-cloud diesel or “winter diesel” also requires the production team to operate the catalyst more severely, leading to increased naphtha production.
As those three factors are adjusted, the naphtha yields may increase, but in Montana Renewables’ case, the shift is not drastic. At every facility that uses a HEFA process, these variables determine the process naphtha yield.
Process Integration
Using naphtha on-site as part of the HEFA production process is one of the solutions available to fuel producers, according to Rasmussen. About 20 HydroFlex units are in operation today, and two
of those have Topsoe’s H2bridge technology integrated into the system, which is a hydrogen plant that transforms the off gases and naphtha byproduct into lowcarbon-intensity hydrogen for use in SAF and RD production. “Topsoe is the only licensor that can license both a renewable jet and diesel plant and a hydrogen plant,” Rasmussen says. We license them as a combined integrated unit. This circular hydrogen production reduces the carbon intensity because you’re not importing fossil natural gas to make your hydrogen for jet and diesel [fuel]. You’re making your own hydrogen from a biogenic feedstock to produce the low-carbon-intensity hydrogen, and that benefits the carbon intensity of your jet and diesel.”
Fueling Options
Naphtha is derived from every refining process, whether that be from renewable sources or petroleum. Typically, naphtha is used as a gasoline blending component, according to Wojciechowski. Because it has a boiling point like gasoline, naphtha comes out of the process as an unfinished fuel, or a blend stock. “Just by using this material, the carbon footprint of your traditional gasoline will have a lower carbon count,” Ran says.
Wojciechowski explains that Montana Renewables sells its naphtha to a singular customer, limiting direct market exposure. However, as the recipient of their fuel looks outward, there are plentiful opportunities beyond gasoline blending. The octane content of naphtha is too low
After a speedy startup in 2022, Montana Renewables is bringing 12,000 barrels per day of renewable diesel, SAF and naphtha to the sustainable fuels market. IMAGE: MONTANA RENEWABLES
for it to be used as a fuel on its own, he explains, as it would cause engine knocking. One potential strategy to make it usable as a fuel is to mix it with E85 to create a 100% renewable gasoline. “Ethanol can be well over 100 octane, and when you blend it with that type of naphtha ma-
terial, it basically would raise that way up, and then you would have the benefits of an oxygenated fuel mixture made entirely of renewable components,” he says. “So, it doesn’t have contaminants, doesn’t have aromatics, but it lacks octane, and that’s why it needs other blending components
MOBILE FALL PROTECTION
to get it up to the specifications where our engines can process it without knocking.”
World Energy sends the SAF facility’s naphtha into the E85 market for blending, replacing the gasoline percentage and making the fuel entirely low carbon.
Another possibility is to use the naphtha as a denaturant for ethanol, Wojciechowski says. Currently, the ethanol industry must denature its fuel to keep it from being 100% alcohol; liquid natural gas derived from petroleum is mixed with it. “Why not put renewal naphtha in with ethanol and just make ethanol 100% renewable?” he says. “So, use it as an ethanol denaturant. That’s one of the [options]; nobody’s talking about it.”
Plastic Potential
Naphtha’s low octane number, around 40-45 points, opens up another opportunity, according to Rasmussen. This paraffinic naphtha can be used as feed to an ethylene cracker to make the
ACCESS TRUCKS FA STER AND MORE SAFELY
The TC-10 Mobile Access and Fall Protection system is a multi-vehicle mobile powerhouse. Whether you are loading, sampling, or transloading railcars, hopper truck, or tanks, there is a model designed for your application.
Explore our fall protection solutions at www.CarbisSolutions.com, or contact us at 1.800.845.2387 for assistance in discovering the perfect solution.
World Energy's facility, located in Paramount, California, was the first commercial-scale facility in North America to produce SAF.
chemical building blocks needed to produce renewable plastics. Once it is transformed into polyethylene and polypropylene, it can be used to make water bottles, phone packaging, polyester and medical devices, according to Ran.
One of Topsoe’s recent initiatives has been PureStep, the company’s circular plastics technology, which makes a variety of plastics infinitely reusable. “The sorted plastic is processed in a pyrolysis unit,” he says. “And Topsoe’s PureStep unit upgrades the pyrolysis oil to an ethylene cracker naphtha feed. So, you see the circularity. The plastic is processed to a naphtha feedstock that goes into an ethylene cracker and this output is used to make plastics again.” Two units are currently in operation, according to Rasmussen.
Implementation of this technology is limited by the lack of logistics and knowledge about recycling. If we want a greener approach, it will cost a bit more, Rasmus-
sen explains. The technology to recycle plastic is here now, but the obstacle is economics. “I think you could pass it on to the consumer, but as of right now, the plastic consumers like Coca-Cola and all the other bottle companies have not been willing, as far as I can see, to pay extra for it,” he says. “It all starts with an off taker— somebody to say that they want it."
World Energy’s mission to target the most challenging sectors meshes well with renewable plastic opportunities, according to Ran. The company has spoken with a few parties who would be interested in sourcing renewable plastics; however, no project is currently underway. “Ultimately, if you take a long view about this in ground transportation, light-duty vehicles, motor vehicles, gasoline, E85, that sector will eventually get electrified,” Ran says. “With plastics, there are limited substitutes. So, the long-term solution is that it needs to be deployed in that area.”
Renewable plastics constitutes a significant opportunity for companies who are “thoughtful and mindful” about sustainability, and who see the potential for retail consumer appeal, Ran says. He sees the existing market for renewable plastics as a nascent—an emerging market, reminiscent of the biodiesel and SAF spaces in years past.
The future value of naphtha depends on the economic incentive for it as a product, rather than a byproduct. For now, according to Ran, naphtha is both. However, the potential opportunities for the molecule are myriad. “There are a lot of places it could go,” Wojciechowski says. “I think the fun part and the interesting part is trying to figure out which one makes the most money for you and what that opportunity [is].”
Author: Katie Schroeder Contributions Editor, SAF Magazine katie.schroeder@bbiinternational.com
A leader in bioprocessing, Merrick provides multi-discipline services from FEL through commissioning for innovators in the following markets: Sustainable Aviation Fuels (SAF), Advanced Biofuels, and Cellulosic Biofuels.
ON THE
FOOT GAS
Despite the challenges it currently faces, the bio-based diesel industry is building on its successes and is ready to battle.
BY ANNA SIMET
With an overall theme of “Accelerate,” the 2025 Clean Fuels Conference left no stones unturned, covering all aspects of the biodiesel, renewable diesel and sustainable aviation fuel sectors, from policy and tax incentives to market dynamics and technical developments. Donnell Rehagan, CEO of Clean Fuels Alliance America, delivered opening remarks at the event, which was held Jan 20-23 in San Diego, California. He began by highlighting important milestones the bio-based diesel industry has reached as of late, one being that U.S. production reached nearly 5 billion gallons in 2024. “That’s up almost 10% from 4.6 billion the previous year,” he said. “This steep growth—particularly in renewable diesel—underscores our growing relevance.”
These fuels now make up about 10% of the diesel fuel supply in the U.S., according to Rehagen. “Our host state, California,
is one of the single most important markets for our industry,” he said. “Biodiesel and renewable diesel have displaced 75% of all diesel sold in the state.” It is more difficult to find diesel fuel in California than biobased diesel fuel, he said, adding that, so far, this industry is responsible for 45% of California’s progress under the Low Carbon Fuel Standard.
Rehagen acknowledged the challenges the industry is facing along with its successes, but assured attendees that he believes it will pull through and become stronger. “We’ve been waiting for critical guidance on the new federal tax incentive system, known as 45Z, and the delays have already begun causing real hardships for our industry. Finally, the Treasury released guidance. It left us with a few answers, but a lot of questions. Now, more than ever, we need to stand united to ensure the new administration prioritizes addressing those gaps and finalizing the rule. Our feedstock producers and fuel producers deserve clarity on how the tax credit will impact them. Patience will still be necessary, but persistence will be key.”
Rehagen referenced challenges the industry faced in 2018-‘19 as an example, when the production tax credit was lapsed for two years. “That was a tough time for all of us,” he said. “But together, we fought hard and secured a five-year tax credit— the longest and most stable period we’ve ever had, and a period of record growth for the industry.”
Looking ahead, 2025 brings another major priority: Renewable Fuel Standard renewable volume obligations, Rehagen said. “Work has already begun to demonstrate our industry’s potential to the EPA. What we call 'Set 2.0' will shape the next several years of fuel production. The volumes were due last November, but the deadline was missed. This makes it all the more critical that we advocate for significant growth in those volumes and push this administration to finalize them soon, so we don’t find ourselves this time next year without RVO levels for 2026.”
Feedstock Dynamics
Moving onto feedstock, Rehagen discussed the crunch the industry is facing with increased production and subsequent
(TOP) Donnell Rehagen, executive director of Clean Fuels Alliance America, delivered a state-of-the-industry address at the 2025 Clean Fuels Conference. (BOTTOM) Participating in the morning session focused on the current landscape of clean fuels were Carlos Gutierrez, executive director of the California Advanced Biofuels Alliance; Floyd Vergara, former director of state government affairs at CFAA and Low Carbon Fuels Standard regulatory expert; Richard Battersby, assistant director at the City of Oakland Public Works Agency; and Harry Simpson, president and CEO at Crimson Renewables.
feedstock demand. “Today, we have an interesting challenge—one those involved in the early days of the clean fuels industry may have never envisioned: a need for more feedstock,” he said. “We find ourselves trying to balance the push and pull of domestic and imported feedstock: products like soybean oil, canola oil, animal fats and used cooking oil. “
The industry’s rapid growth has outpaced domestic feedstock availability, he added, saying that current calculations of domestic feedstock could support approximately 3.3 billion gallons of fuel production, though the industry produced 5 billion gallons last year.
Imported feedstock has been filling demand gaps, but it hasn’t been without controversy—opinions on the proper role of imported feedstock differ and are strong on both sides, Rehagen admitted. “It has generated angst with domestic feedstock growers and processors,” he said. “This is not ideal. The clean fuels industry was built in the early 1990s around the need to provide a large-scale consumer for excess domestic soybean oil, and therein was born biodiesel. Back then, they would not have seen imported feedstock as playing any role. While it may be hard to square this current dynamic with our original vision, imported feedstock has become necessary to meet the demand.”
Rehagen emphasized the importance of feedstock balance to the industry—the growing need for more vegetable oils with those of the food and feed industry, and the important role of waste feedstocks like used cooking oil, distillers corn oil and animal fats. “Growing volumes of domestic vegetable oils are just around the corner,” he said. “The soybean crush industry has invested over $6 billion dollars in the largest expansion of soybean crush in over 50 years. They’ve seen our industry grow, and like we do, they believe that growing demand for clean liquid renewable fuels is now the new norm ... the expansion of soybean crush is very important for the clean fuels industry as it brings significantly more feedstock to the table to support the growth in production capacity of our fuels.”
Historically, Rehagen said, U.S. farmers have exported roughly half of their whole bean production, sending a substantial volume of domestic soybean oil away as well. “With this additional crush capacity— a 30% expansion—we can export fewer beans and keep more oil. A NOPA [National Oilseed Processors Association] analysis that looked at 2024 to 2030 shows that this extra crush could provide us with 900 million gallons of additional soybean oil annually, and soybean yields continue to climb.”
Rehagen correlated the importance of crush expansion to advocating for higher RVOs. “Stagnation in feedstock availability—domestic or imported—makes arguing for higher RVOs much more difficult,” he said. “You know the adage about the rising tide lifting all boats. Well, that sure is applicable to the clean fuels industry at this time.”
Ready to Battle
Following Rehagen, Steven Cliff, executive officer of California Air Resources Board, provided an overview and update on the state’s Low Carbon Fuel Standard Program, first addressing the uncertainty the new administration has brought, assuring attendees that CARB is taking steps
to defend California’s clean air climate and environmental protections. “We’re here to defend the programs that benefit Californians, and other states that take advantage of our programs to benefit the residents of their states,” he said. “You may have heard that the California Legislature is working to set up additional funds to shore up state and local defenses against this new administration. We're hoping that that's not necessary, but we are moving to make sure that our programs remain stable.”
Cliff reminded attendees that CARB prevailed in lawsuits during the first Trump administration, “because they were founded on science and on good legal premises, so we believe that we'll continue to prevail. That's important, because that provides certainty to those of you who are investing in the programs that they will stay in place, and that's the type of work that we continue to do to make sure that the foundational parts of our efforts are very sound, but also married to a list of priorities for this year.”
Author: Anna Simet Director of Content & Senior Editor, SAF Magazine aimet@bbiinternational.com
Steven Cliff, executive officer at the California Air Resources Board, provided a progress update on the state's Low Carbon Fuel Standard and explained how CARB is preparing for operations under the new administration.
US SAF Market Still Digesting Uncertainty of 45Z Clean Fuel Production Tax Credit
If you’re still confused by the uncertainty that was brought on by the delayed and clunky rollout of the 45Z Clean Fuel Production Tax Credit, then you’ve come to the right place, because guess what? I’m still confused, too.
At the Clean Fuels Conference in San Diego in January—just days after the tax guidance was finally released—there was a standing room-only panel discussion where seasoned federal tax experts were going through the facts and everything the federal government had released up to that point. But instead of coming to a consensus on 45Z and walking out of the packed room with a sense of clarity, we heard conflicting interpretations of the policy and how it might ultimately be implemented. “It left us with a few answers, but a lot of questions,” Clean Fuels Alliance America CEO Donnell Rehagen said at the event. “Our feedstock
- By Jordan Godwin
producers and fuel producers deserve clarity on how the tax credit will impact them.”
Let’s review what we know. On Jan. 10, the Treasury Department and Internal Revenue Service released an 83-page notice of intent to propose regulations addressing 45Z, which is a tax credit available to producers of domestically produced clean transportation fuel sold from Jan. 1, 2025, through Dec. 31, 2027. Treasury and the IRS also released a 15-page interim guidance, seeking comments by April 10.
The main takeaway from the release of that guidance was that the Biden administration, in its final days in office, decided to release the long-awaited 45Z guidelines as merely “interim guidance” rather than a final rule, meaning it would be up to the Trump administration to finalize the rule.
Biofuel industry leaders said they were “deeply disappointed,” and that it was “too
little, too late.” Renewable Fuels Association CEO Geoff Cooper said, “We do not believe this guidance alone will spur the investment, innovation and job creation in the clean fuels sector that Congress and the administration intended. It simply isn’t bankable, investible or otherwise actionable for the vast majority of biofuel producers.”
Later in January, the U.S. DOE released a 45ZCF-GREET model for use in determining emissions rates, and the USDA released its interim guidance on climate-smart agriculture practices. If finalized, such practices could be used to garner the 45Z tax credit, which rewards fuel producers with a
Jordan Godwin
credit that increases in value based on the producer's ability to reduce the carbon intensity of their product below the 50 kg of CO2 per MMBtu baseline established in the Inflation Reduction Act of 2022.
Under the model, the “applicable amount” of 45Z for SAF is a base amount of 35 cents per gallon, up to $1.75 per gallon. It’s unclear how many SAF producers—current or prospective—might be able to capitalize on the full amount of the tax credit, but at this point, it’s pretty safe to say this isn’t the pivotal catalyst for growth in the U.S. SAF industry that it was hailed to be when it was included in the IRA. And very few industry sources have expressed optimism that 45Z will help achieve the SAF Grand Challenge goals put forth by the Biden administration in 2021, with an aim to produce 3 billion gallons per year in the U.S. by 2030.
Since the release of the interim guidance, we’ve had a bill introduced in Congress to extend 45Z for an additional 10 years, through 2037. On the flip side, we’ve also had a bill introduced to completely repeal 45Z. While neither of these bills are likely to go very far this year, it’s clear that there are very conflicting feelings around 45Z that aren’t going anywhere.
Darling Ingredients, which operates joint-venture Diamond Green Diesel with
Valero Energy to produce biofuels like SAF and renewable diesel, discussed 45Z on a February earnings call. “We have thoroughly reviewed the 45Z Clean Fuel Production Credit guidance with third-party auditors and are aligned in determining that it provides a clear safe harbor for the company's accounting treatment of the tax credit,” Darling CEO Randall Stuewe said. "As a result, we are confident in our ability to book the credit and fully realize its value. While there are a few details to iron out regarding feedstock options and certification by product and destination, DGD’s strategic location, logistical flexibility and capability to process a diverse range of feedstock positions us well to maximize the value of this credit.”
Stuewe touts DGD’s SAF project as the largest in the world that’s “under budget and ahead of schedule.” Stuewe said that with clarity around 45Z and California’s Low Carbon Fuel Standard, which just wrapped up a major rulemaking aimed at ramping up the state’s greenhouse gas emissions reduction targets, that Darling believes “the market is stabilizing.”
In the month following the release of the 45Z guidance, OPIS has seen LCFS credit prices somewhat choppy but largely holding just under $75 per credit. D4 biomass-based diesel renewable identification
number (RIN) credits, however, rallied nearly 25% to 88 cents per RIN on Valentine’s Day. To that point, RINs haven’t hit $1 since September 2023. Similarly, LCFS credit prices haven’t hit $100 per credit since June 2022.
For SAF to really start taking off in 2025, it’s going to need more help from RINs and LCFS credits beyond the 45Z credit. A November 2024 report from the DOE said 3 billion gallons of annual domestic production capacity by 2030 is possible, but it’s going to take $44 billion of investment to get there. The report also pointed out that the biggest barrier to SAF’s scale up is cost.
Whether 45Z can be the motivating factor to help incentivize that growth for the SAF industry still remains to be seen and is clouded by uncertainty—just like its rollout.
OPIS, a Dow Jones Company, is a pricereporting agency that offers daily price assessments for renewable diesel and SAF with an aim to provide the growing markets with accurate, fair and transparent price discovery that utilizes bids, offers and trades in the spot market.
Author: Jordan Godwin Director of Biofuels Markets, OPIS jgodwin@opisnet.com
Ramping Up SAF Production: From Raw Material Collection to Innovative Pathways
- By Pratik Chandhoke
Sustainable aviation fuel (SAF) is considered one of the most significant solutions to decarbonizing aviation, but currently, its availability is limited. According to a recent report by the International Air Transport Association, even though SAF production reached 1 million metric tons
in 2024, doubling 2023 production, the growth rate is considerably slower than anticipated. So, how can the industry accelerate SAF production?
There are some promising ways to ramp up SAF production from a technical perspective. Two of them are optimizing
raw materials collection for existing production technologies such as used cooking oil, as well as exploration of the possibility of leveraging a new generation of raw materials and production technologies to produce SAF.
CONTRIBUTION: The claims and statements made in this article belong exclusively to the author(s) and do not necessarily reflect the views of SAF Magazine or its advertisers. All questions pertaining to this article should be directed to the author(s).
Raw Materials Availability for the HEFA Production Process
The most used pathway to produce SAF is hydroprocessed esters and fatty acids (HEFA). In this process, vegetable oils, waste and residue oils and fats are refined into SAF through this process, which uses hydrogen (hydrogenation). As a leading producer of renewable fuels, Neste developed its proprietary NEXBTL technology based on hydrogenation more than 25 years ago, enabling it to convert almost any vegetable, waste or residual oil or fat into SAF and other renewable products such as renewable diesel.
Although the technology offers broader opportunities, Neste only uses waste and residue raw materials such as used cooking oil and animal fat waste to produce its SAF. This is because these raw materials are widely available, and their use contributes to a circular economy. The raw materials availability for HEFA is significant. According to a report by the World Economy Forum, total availability of waste and residue oils and fats is expected to exceed 40 million metric tons per year by 2030. Converting these raw materials into SAF could meet about 5% of total 2030 jet fuel demand globally. In short, the availability of raw materials is sufficient to significantly ramp up SAF production in the short term.
The collection of these raw materials is quite granular and can be made more efficient by incentivizing proper disposal and collection, e.g. by restaurants and households, as well as partnering with waste management companies to streamline the process. For example, in the United States, Neste has access to used cooking oil from over 90,000 locations through its subsidiary Mahoney Environmental, a company Neste acquired in 2020. Acquisitions or partnerships like this can help SAF
producers grow their waste and residue raw material platform and essentially help them keep pace with the world’s growing demand for renewable products.
Innovative Technologies for SAF Production
There are currently 11 SAF production pathways that have been approved by ASTM (including three for coprocessing). However, only a few of them are expected to contribute to actual SAF production in the near term. Right now, HEFA is the only commercially viable pathway and most of the SAF produced today is HEFA SAF. According to research, the U.S. Department of Energy estimates the HEFA and alcohol-to-jet (AtJ) pathways will make up approximately 89% of the expected 2030 SAF production (HEFA at 66% and alcohol-to-jet at 23%), while the industry needs to invest in technologies that are in early stages of development, such as power-to-liquids (PtL).
PtL technologies use renewable hydrogen and carbon capture to produce a liquid hydrocarbon fuel, or e-fuel. This innovative process holds immense potential for decarbonizing the transportation sector. The versatility of PtL fuels is a key advantage, as they can be used in a wide range of vehicles, not only for aviation. Ships and both heavy- and light-duty vehicles can also utilize PtL fuels to be more sustainable. This flexibility makes PtL a promising solution for achieving significant reductions in greenhouse gas (GHG) emissions across the transportation sector.
Another technology that producers are looking at is the development of novel vegetable oils produced by regenerative farming practices. Regenerative farming practices aim to trap carbon in healthier soils, promote biodiversity and reduce emissions from agriculture, while increas-
ing farm productivity. In January 2024, Neste and Bayer, a global enterprise with core competencies in the life science fields of health care and agriculture, signed a memorandum of understanding aimed at developing a winter canola ecosystem in the U.S., including identifying partners and developing the value chain together, and scaling winter canola production as a raw material for renewable products.
As these technologies continue to mature and become more cost-competitive, they are poised to play a crucial role in the transition toward a sustainable energy future.
The Future of Aviation
The future of aviation hinges on expanding HEFA SAF production, embracing innovative technologies such as PtL, and developing new raw materials. This will offer several advantages, including increased raw materials flexibility, better scalability and improved GHG emission reductions. At the same time, we need to move toward using 100% SAF safely in planes, as it is currently capped at 50% blends with conventional jet fuel.
It is clear that SAF will remain a key solution for the aviation industry to decarbonize well into the future, but it will be an enormous challenge to accelerate production, which we can only take on by getting into action and cooperating across the whole aviation ecosystem.
Author: Pratik Chandhoke Technical Fuel Manager, Neste www.neste.com
Change Service Requested
