Skip to main content

Industry Innovation

Sustainable Aviation Fuel

One of the most exciting advancements in the ethanol industry is the development of sustainable aviation fuel (SAF). SAF represents a significant step towards reducing the carbon footprint of air travel. By converting ethanol into jet fuel, Nebraska will help to create a greener aviation industry. Ethanol and oils from corn and soybean processing serve as low-carbon, low-cost feedstocks to produce SAF, which can reduce emissions by more than 50% compared to conventional jet fuel.

The Role of Midwest Ethanol

The Midwest, particularly Nebraska, plays a crucial role in the ethanol industry. With its abundant corn supply, Nebraska is ideally positioned to lead in the production of ethanol and ethanol-based products. The region's commitment to sustainable farming practices and cutting-edge technology helps keep Nebraska's ethanol industry competitive. As engineers get closer to finding an economically sound option for American-made SAF, Nebraska is preparing to play a key role in the production of advanced biofuels.

The innovations in Nebraska's ethanol industry are not only beneficial for the environment but also for the economy. The production of advanced biofuels and SAF creates new job opportunities and supports rural economies. Moreover, by reducing the carbon footprint of transportation, these innovations contribute to global efforts to combat climate change.

2024 Nebraska SAF Legislation

During the 2024 legislative session, Senator George Dungan introduced LB1072, proposing to create an income tax credit for production of SAF if the fuel reduced emissions by 50% compared to petroleum jet-A. To calculate the emissions, the SAF producer may use either the GREET model or the International Civil Aviation Organization model.

The market for SAF is projected to see extraordinary growth from $1.1 billion in 2023 to $16.8 billion by 2030, boasting a vigorous compound annual growth rate of 47.7%. This untapped potential leaves ample opportunity for leading the charge on the issue. 

The tax credit will provide $0.75 per gallon of SAF meeting the requirements, and $0.01 per gallon for each percent of emissions reduction above 50%. The credit is available to SAF producers for five years, starting in 2027. Along with being one of the highest producing states for feedstock sources, this credit will position Nebraska to become the SAF hub of America, providing the world with renewable and sustainable energy for air travel. 

Read NEB's press release here


Additional Industry Resources

American Coalition for Ethanol

Growth Energy 

Renewable Fuels Association

The SAF Coalition