President Joe Biden has expressed his support for the ethanol industry’s request to make it easier for sustainable aviation fuel (SAF) made from corn-based ethanol to qualify for tax credits under the Inflation Reduction Act (IRA), his signature climate law.
The IRA requires SAF producers to show that their fuel reduces greenhouse gas emissions by at least 50% compared to conventional jet fuel, using an approved scientific model. The ethanol industry has asked the administration to adopt the Department of Energy’s GREET model, which they believe is more favorable to ethanol-based SAF than the International Civil Aviation Organization’s (ICAO) model.
Biden said on Wednesday that he backs the ethanol industry’s position and that he wants to see more SAF made from corn and other crops. He said that SAF is a key component of his plan to decarbonize the aviation sector, which accounts for about 2% of global carbon emissions.
“We’re going to make sure that we have a tax credit for low-carbon sustainable aviation fuel. And we’re going to make sure that it’s not just made from waste and residues, but also from crops like corn and soybeans,” Biden said at an event in Iowa, a major ethanol-producing state.
Biden’s remarks were welcomed by the ethanol industry and its allies, who argue that ethanol-based SAF can help create jobs, boost farm income, and reduce dependence on foreign oil. They also say that ethanol-based SAF can meet the administration’s goal of supplying at least 3 billion gallons of SAF per year by 2030, and 100% of aviation fuel demand by 2050.
“President Biden’s support for ethanol-based SAF is a game-changer for our industry and our planet,” said Geoff Cooper, president and CEO of the Renewable Fuels Association, a trade group representing ethanol producers.
However, Biden’s stance has also drawn criticism from some environmental groups, who contend that ethanol-based SAF is not as green as it claims to be. They say that the GREET model underestimates the emissions associated with land use change, fertilizer use, and deforestation caused by expanding crop production for fuel. They also say that ethanol-based SAF competes with food security and biodiversity.
“Ethanol-based SAF is a false solution that will only worsen the climate crisis and harm the environment,” said Annie Petsonk, international counsel at the Environmental Defense Fund, a non-profit organization. “The administration should reject the ethanol industry’s request and stick to the ICAO model, which is more rigorous and transparent.”
The final decision on the modeling question rests with the Treasury Department, which is expected to announce it by September. The decision will determine who benefits from billions of dollars in subsidies available under the IRA for SAF producers.