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21st May 2021

US makes progress with Sustainable Skies Act

New legislation has been introduced in the United States House of Representatives, intended to drive the production and uptake of sustainable aviation fuel (SAF).

The Sustainable Skies Act brought forward by Congressman Brad Schneider, along with Congressman Dan Kildee and Congresswoman Julia Brownley, establishes a $1.50 – $2.00 per gallon blender’s tax credit for SAF that achieves at least a 50% reduction in lifecycle greenhouse gas emissions compared to conventional jet fuel. The credit will increase from $1.50 per gallon by one cent for each additional percentage of lifecycle greenhouse gas emissions savings demonstrated above 50 percent.

A performance-based tax credit will encourage the production of SAF and help make the low-carbon alternative to conventional jet fuel more cost-competitive, while further incentivising the development and deployment of SAF providing improved emission reductions.

Such legislation will help enable sustainable flight to be realised globally over the coming years and will drive commercialisation of SAF technology. Our planned Bayou Fuels facility located in Mississippi is set to produce negative-emission transportation fuels. We welcome the positive policy platforms and regulatory environment that has been created which should help the United States to become a leading sustainable fuels nation.

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