FINWIRES · TerminalLIVE
FINWIRES

US SAF Production 2030 Goals Unattainable Without Industry, Policy Support, Study Shows

By

The US could produce enough sustainable aviation fuel to meet roughly two-thirds of its 2030 federal target, but getting to the 3 billion-gallon goal may be unlikely without additional industry and policy support, according to a new Washington State University-led study.

The study offers a detailed look at the nation's SAF industry.

The study found that the most optimistic scenario projects domestic SAF production could reach about 2.1 billion gallons annually by 2030, though substantially lower production levels may be realized depending on market conditions, project delays, and policy support.

"We wanted to take a very pragmatic look at where we really are," said Kristin Brandt, an adjoint faculty member in the Composite and Materials and Engineering Center in WSU's Voiland College of Engineering and Architecture and lead author on the study.

"There are people saying this industry is going to explode overnight and others saying nothing will happen at all. The reality is somewhere in between," Brandt added.

Sustainable aviation fuel has emerged as one of the aviation industry's leading near-term strategies for reducing carbon emissions because it can already be blended with conventional jet fuel and used in existing aircraft and airport infrastructure.

One of the study's major findings is what researchers describe as the gap between announcements and reality.

"Announcements are not the same thing as fuel," Kristin Brand, lead author of the WSU study, said. "People announce giant facilities with aggressive timelines all the time, but historically many projects get delayed, scaled back, or never move forward."

The study also found that hydroprocessed esters and fatty acids will likely dominate US SAF production through 2030. These fuels are largely made from fats, oils, and greases such as used cooking oil and animal fats.

"There's actually a global shortage of used cooking oil," Brandt said. "It sounds ridiculous, but it's true."

Related Articles

Commodities

EMEA Natural Gas Update: Futures Prices Down on Hormuz Talks

European natural gas futures pared earlier losses in after-hours trading on Wednesday but still traded lower as markets tracked developments around the Strait of Hormuz and assessed broader supply and storage risks.The front-month Dutch TTF contract declined by 2.669% to 46.205 euros ($53.74) per megawatt hour, while the UK NBP front-month contract fell 1.925% to 113.10 British pence ($1.52) per therm.Shipping data and media reports indicated another LNG tanker from Abu Dhabi has transited the Strait of Hormuz en route to India, signaling improved energy flows through the strategic waterway despite ongoing geopolitical tensions. The vessel reportedly loaded cargo at Abu Dhabi National Oil Co.'s Das Island export facility without broadcasting its position. Satellite tracking has shown continued tanker activity at Das Island even as vessels intermittently go dark near the terminal, news outlets reported.Data from Gas Infrastructure Europe showed EU gas inventories at 38.52% of capacity as of Wednesday, compared with 46.60% a year earlier.Analysts at Timera Energy noted that the forward futures prices curve still offers limited incentive for traders to inject gas into storage, with pricing implying expectations of easing geopolitical risk later in 2026. That structure is discouraging restocking activity, while government intervention is seen as unlikely after losses incurred during intervention programs in the 2022 energy crisis. Persistent low storage levels could leave Europe exposed to elevated prices next winter if refill rates do not improve.Weather conditions are adding further pressure on the effort to boost inventory levels.French meteorological group Keraunos said in a social media post that several hundred monthly heat records were broken across Europe on Tuesday, while forecasters warned of an increasing likelihood of hot, dry conditions returning in June.Atmospheric G2 said in a social media post that extended higher temperatures could boost electricity demand for cooling, reduce wind generation, and strain hydro output and river systems, potentially increasing reliance on gas-fired power.In industry news, the German state-owned importer SEFE announced an agreement to purchase 1 million tonnes of LNG per year from Canada's Ksi Lisims LNG project for 20 years. Deliveries are expected to begin in 2030. The deal adds to SEFE's existing long-term supply portfolio, which includes contracts with Venture Global, Argentina's Southern Energy SA, and Turkey's BOTAS, as European buyers continue to lock in future LNG volumes amid ongoing market volatility.

Commodities

Canadian Utilities Focus On 'Quiet Grind' as Valuations Hit Premium Levels, RBC Says

Canadian regulated utilities continue to "quietly grind along," delivering steady execution on strategic priorities even as broader markets remain dominated by macro volatility and AI-driven headlines, RBC Capital Markets strategists said in a Wednesday note.RBC analysts said that the sector's Q1 results, reaffirmed multi-year capex plans and continued progress on growth initiatives underscore what the bank describes as a consistent focus on controllable factors, rate cases, regulatory outcomes and customer demand evolution, rather than headline-driven sentiment.Affordability remains a key constraint across jurisdictions, with RBC flagging outstanding and upcoming rate cases as a continuing source of regulatory risk. However, recent developments across several utilities highlight incremental de-risking and modest earnings uplift opportunities.From a valuation perspective, RBC said Canadian regulated utilities are trading at about 36% premium to the S&P/TSX Composite on a price-to-earnings basis and about 117 basis points above Government of Canada 10-year bond yields.Though elevated, the bank said these levels reflect improved earnings visibility and a longer perceived runway for stable growth, as well as the sector's defensive characteristics.RBC said stock selection remains critical in the current environment, favoring names with identifiable "bankable themes."The bank highlighted Brookfield Infrastructure for its capital recycling strategy, AltaGas for exposure to the Western Canadian Sedimentary Basin and its liquefied petroleum gas export platform, and Emera for its ongoing de-risking profile and exposure to Florida utilities.RBC also pointed to continued regulatory and operational progress across the sector. The brokerage firm flagged recent rate-case achievements at Emera's Nova Scotia Power unit, while noting that approval for a proposed CA$700 million ($500 million) securitization of thermal assets scheduled for retirement by 2030 remains pending.Several subsidiaries of Algonquin Power & Utilities in the US, including Empire Electric Missouri, CalPeco Electric, and New England Natural Gas, have secured revenue increases totaling about $204 million, RBC said.Meanwhile, Hydro One continues to expand its electricity transmission pipeline, with its backlog now comprising 15 projects, while data center-driven demand is emerging as a new growth driver for both Fortis and Emera's Tampa Electric operations.RBC also highlighted a series of near-term regulatory catalysts, including a decision from New Mexico's regulator on Emera's proposed sale of New Mexico Gas, which has received examiner-level approval with conditions and could close mid-year.Canada's Alberta Utilities Commission is also expected to rule on Canadian Utilities' Yellowhead Mainline application in the coming months, potentially enabling construction to begin shortly thereafter.Later in the year, investors will also watch for Fortis' rate application decision in Arizona and Hydro One's upcoming joint rate filing.Algonquin is also expected to provide an update in Q2 on potential US tax implications arising from its proposed legal redomiciliation structure.Going forward, RBC said that while the sector's longer growth runway supports valuations, macroeconomic pressures, including inflation linked to energy costs, and already-stretched multiples may limit further re-rating potential.

Commodities

Global Chemical Spot Markets Drift Lower as US Methanol Gains, TPH Energy Says

Global chemical spot indicators were flat to lower over the week, with US methanol the sole outperformer amid tightening supply conditions, TPH Energy strategists said in a Wednesday note.Matthew Blair, analyst at TPH Energy, said that US methanol rose $3 to $541 per metric ton, supported by supply constraints from planned and unplanned outages in key producing regions, including China and Malaysia.The increase lifted the quarter-to-date average by $194/mt. Methanex Corporation (MEOH) is seen as the primary beneficiary of firmer methanol pricing.Elsewhere, China vinyl acetate monomer prices posted the sharpest weekly decline, falling 5 cents to 49 cents, as improved global supply weighed on prices following the completion of Dow's Texas City VAM plant turnaround in mid-May.Despite the weekly weakness, the quarter-to-date average remains higher, up 26 cents. Celanese (CE) is viewed as most exposed to VAM dynamics within coverage.Elsewhere, TPH said that US polyethylene fell 4 cents to 66 cents per pound, US polypropylene dropped 3 cents to -71 cents/lb, and US polyvinyl chloride declined 1 cent to 39 cents/lb. Southeast Asia caustic soda was down $20 to $435/mt, while US methyl tertiary-butyl ether slipped 9 cents to $3.40/gal and US styrene eased 1 cent to 63 cents/lb.On the other hand, US ethylene dichloride and China acetic acid were broadly unchanged over the week at 11 cents/lb and 20 cents/lb, respectively.Price: $59.97, Change: $-0.17, Percent Change: -0.28%

$CE$MEOH