US to finalise clean fuel tax credits before Jan: Vilsack

The United States is working to finalise the clean fuels tax credits programme before the end of current Biden Administration in January, according to US Agriculture Secretary Tom Vilsack.

The tax credit programme is set to take effect from 2025 onwards and affects the production of transportation fuels across the US including the sustainable aviation fuel (SAF).

“I’m confident that we’re going to get ‘er done,” Vilsack said while speaking at a conference in Washington D.C., according to reports.

The US government issued guidance on SAF tax credits earlier this after a prolonged delay which disappointed the industry due to its stringent farming practice recommendations. Meanwhile, producers have also warned that current benefits are inadequate to meet SAF Grand Challenge.

The US Department of Agriculture is expecting to increase the number of feedstocks and expand farming practices eligible to secure credits, said the agriculture secretary.

“We are acutely aware of the calendar. To the level it can be, it’s on a fast-track,” Vilsack was quoted as saying in Washington D.C.

However, despite that, the US has seen significant increase in SAF production. From just 5m SAF production in 2021, the country has produced nearly 52m gallons in the first half of 2024.

Moreover, through June 2024, SAF is predominantly based on conversion of fat, oil, and grease feedstocks through the hydroprocessed esters and fatty acids (HEFA) process. Based on public reporting, major producers in first half of 2024 included World Energy, Montana Renewables, Sinclair, GEVO, and Neste Oil.