The transition to sustainable aviation fuel (SAF) is a critical step toward reducing the aviation industry’s carbon footprint and achieving global climate goals. However, scaling SAF production and adoption requires more than just innovative technology—it also depends on strong government policies and incentives. At New Rise Renewables, we harness non-food stock crops like corn oil and soybean oil, paired with hydrotreating technology, to produce SAF that aligns with evolving regulatory frameworks and sustainability goals.

The Importance of SAF in Policy Frameworks

As governments worldwide commit to reducing greenhouse gas emissions, the aviation sector faces increasing scrutiny. SAF offers an immediate, scalable solution for decarbonizing air travel without requiring a complete overhaul of aircraft engines or infrastructure. Recognizing this potential, policymakers have introduced a range of measures to encourage SAF development and adoption.

Key global policies and initiatives include:

1. The International Civil Aviation Organization (ICAO) and CORSIA
   The Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA) aims to cap net CO₂ emissions from international flights at 2019 levels. Airlines can meet their obligations by using SAF, creating a clear incentive for adoption.
2. European Union’s Fit for 55 Package
   The EU’s ambitious climate plan includes mandates for SAF blending, requiring airlines to gradually increase the proportion of SAF in their fuel mix.
3. U.S. Inflation Reduction Act (IRA)
   The IRA introduced tax credits specifically for SAF production, incentivizing manufacturers like New Rise Renewables to expand capacity.
4. National SAF Roadmaps
   Countries like Japan, the UK, and Canada have developed national strategies to promote SAF production and integrate it into their broader sustainability goals.

 

Incentives Driving SAF Production

Governments are providing financial support to encourage innovation and scale SAF production. These incentives include:

1. Production Tax Credits
   In the U.S., the IRA offers a tax credit of up to $1.75 per gallon of SAF, provided the fuel achieves at least a 50% reduction in lifecycle greenhouse gas emissions.
2. Grants for Research and Development
   Funding programs support advancements in SAF production technologies, such as the hydrotreating process used by New Rise Renewables.
3. Blending Mandates
   Many regions are setting SAF blending requirements for airlines, creating guaranteed demand and encouraging investments in SAF infrastructure.
4. Subsidies for Feedstock Development
   Financial incentives for cultivating renewable feedstocks, particularly non-food crops like those used by New Rise Renewables, ensure a sustainable supply chain.

 

How New Rise Renewables Aligns with Policy Goals

At New Rise Renewables, our approach to SAF production is designed to meet and exceed government standards:

• Non-Food Stock Crops
  By using non-food resources like corn oil and soybean oil, we sidestep concerns about food security while creating a sustainable feedstock supply. This approach aligns with regulations that prioritize low-carbon, non-disruptive feedstock sources.
• Hydrotreating Technology
  Our advanced hydrotreating process produces SAF that meets stringent aviation performance standards and achieves significant lifecycle emissions reductions, qualifying for incentives such as tax credits.

 

The Future of SAF Policy

As climate targets become more ambitious, government support for SAF is expected to grow. Future policies may include:

• Higher Blending Mandates
  Increasing SAF requirements in fuel mixes will drive production and adoption further.
• Global Standards
  Harmonized international policies could simplify SAF integration for airlines operating in multiple regions.

• Enhanced Feedstock Cultivation and Incentives
  Support for innovative feedstock solutions used by feedstock suppliers for New Rise Renewables will ensure long-term sustainability of SAF supply chains.

 

Conclusion

Strong government policies and incentives are vital to unlocking the full potential of SAF. At New Rise Renewables, we’re proud to contribute to this transformation by producing SAF that not only meets regulatory demands but also sets a new standard for sustainability and performance. Together, with supportive policies and innovative technologies, we can power a cleaner, greener aviation future.

Learn more about how New Rise Renewables is leading the way in SAF innovation and helping the aviation industry achieve its climate goals from any of our other blog posts.