The American soybean industry is standing on the edge of market expansion as Sustainable Aviation Fuel technology moves from theory to reality. With billions of dollars in new processing infrastructure already in place, industry leaders say the future of domestic energy may be growing in America’s fields.
The shift is being driven by a massive increase in production capacity, Paul Winters, Director of Public Affairs for Clean Fuels Alliance America, tells Mid-West Farm Report. While renewable diesel sat at just half a billion gallons in 2020, that capacity has surged to 6 billion gallons today.
“This year, sustainable aviation fuel technology came to fruition,” Winters notes. “There are a couple of plants in the United States that have ramped up significantly from essentially zero up to a few hundred million gallons.”
Despite the technological success, the industry remains in a holding pattern regarding federal regulation. While the inclusion of SAF in the 45Z clean tax credit was a major legislative victory, producers are still waiting for the U.S. Treasury and EPA to finalize the rules. Winters views this “policy stability” as the final bridge to making SAF economically competitive with traditional petroleum.
Beyond the environmental benefits, the growth of SAF represents a vital stabilizing force for farmers facing international market volatility. By keeping more soybeans at home for processing, the industry adds value to every bushel harvested.
“Biodiesel and renewable diesel represent 10 percent of the value of every single bushel of soybeans grown in the United States,” Winters says. “There’s room for growth there.”
As major airline hubs in Los Angeles and Houston begin integrating these fuels, Clean Fuels Alliance America’s message to Washington is: provide the certainty, and the farmers will provide the fuel.
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