Biden administration boosts ethanol industry with sustainable aviation fuel tax credits

The Biden administration has unveiled its plan to make jet travel more climate-friendly by providing subsidies for the development of sustainable aviation fuels. These fuels, derived from agricultural products such as soybeans and animal fat, aim to reduce emissions from jet engines. However, environmental groups and scientists have expressed reservations, citing concerns about the potential for increased deforestation and land use. The administration is revising the scientific model used to gauge the climate friendliness of jet fuels and plans to complete the revisions by March 1. The announcement has sparked political debates surrounding ethanol and biofuels, with industry players lobbying for flexibility in qualifying products. Jet travel accounts for a small percentage of greenhouse gas emissions but is a challenging sector to decarbonize due to the lack of battery-powered options for large planes. The United States aims to become a dominant player in the low-carbon jet fuel industry, which has significant growth potential and job opportunities.