Today, Alder Fuels released the following statement regarding the U.S. Senate passage of the Inflation Reduction Act of 2022, or H.R. 5376, which includes tax provisions that will promote the refinement and adoption of Sustainable Aviation Fuel (SAF).
“Public-private partnership is integral to scaling our renewable energy transition and this legislation represents a significant step forward. Rapid deployment of new biocrude pathways that can scale SAF production is critical to our sustainable future. Once signed into law, this framework will benefit everyone throughout the SAF supply chain; from the manufacturers of the proprietary greencrude, like Alder, to the biomass producers, refiners, airlines, and wider aviation community. At Alder Fuels, we met with the White House a year ago and stood alongside them as they announced the SAF Grand Challenge goal of three billion gallons of domestically produced SAF by 2030. The Inflation Reduction Act of 2022, and specifically the provisions that encourage the refinement, deployment, and adoption of SAF, will play a critical role in meeting that ambitious target,” stated Alder Fuels CEO Bryan Sherbacow.
Included in the Inflation Reduction Act of 2022 is a new tax credit for the sale or mixture of SAF starting in 2023. The tax credit would provide a base amount of $1.25 per gallon, with the possibility to achieve $1.75 per gallon based on emissions reductions of the fuel. Also included in the legislation is an extension of the 50-cents-per-gallon tax credit for alternative fuels and alternative fuel mixtures, a $1.00-per-gallon tax credit for biodiesel and renewable diesel and an extension of the $1.01-per-gallon income tax credit for second-generation biofuel production through 2024.
Alder Fuels also emphasized the vital importance of regulatory clarity for enabling the rapid commercialization of SAF production, particularly access to biomass sources needed to scale. Sherbacow continued, “Regulators must now keep pace with innovation of industry and the public policy momentum this administration has shown on climate change. This means providing clear guidance and a path forward so the entire sector can access the diverse, natural, and abundant supply of biomass we need to push us towards our 2030 targets. Alder Fuels, and our partners in the industry, will continue to push for sensible, forward-looking policies that will unleash the potential of this booming sector. The industry is ready and some of the best minds in the world are hard at work decarbonizing US travel. Record temperatures this summer have once again sent us all a clear message: there is no time to waste.”