SAF production soars high in the US with new capacity

SAF is an alternative to petroleum jet fuel. It is produced from agricultural and waste feedstocks and is consumed in blends with petroleum jet fuel. Investments in SAF have increased because of the US Environmental Protection Agency’s Renewable Fuel Standard (RFS), federal tax credits, and state programs and tax credits incentivising use of the fuel.

In addition to SAF, the EIA’s Other Biofuels category includes renewable heating oil, renewable naphtha, renewable propane, renewable gasoline, and other emerging biofuels that are in various stages of development and commercialisation.

Prior to 2025, renewable naphtha and renewable propane, which are by-products of renewable diesel production, made up most of Other Biofuels production and was growing because of growing renewable diesel production. SAF made up only a small portion of Other Biofuels production because of limited production capacity. At the beginning of 2024, US SAF production capacity was only around 2000 bpd, with just two plants capable of producing SAF: World Energy’s plant in Paramount, California, and Montana Renewables’ plant in Great Falls, Montana.

US SAF production capacity increased by about 25 000 bpd in late 2024. Phillips 66 completed its 10 000 bpd SAF project in Rodeo, California, in 3Q24, before temporarily halting production in 4Q24. Diamond Green Diesel completed its 15 000 bpd SAF project in Port Arthur, Texas, in 4Q24.

A couple of smaller projects will bring additional SAF production capacity online in 2025. New Rise Renewables announced it began SAF production at its plant in Reno, Nevada, in February 2025, adding up to 3000 bpd of SAF production. Par Pacific plans to begin SAF production at its plant in Kapolei, Hawaii, in the 2H25, adding about 2000 bpd of SAF production capacity.

With SAF production capacity now around 30 000 bpd and growing in 2025, SAF will likely drive significant growth in Other Biofuels production and make up most of US Other Biofuels production.

In January, US production of Other Biofuels reached 33 000 bpd, nearly 30% more than the previous record high set in September 2024. Production increased another 30% in February to 44 000 bpd. In the EIA’s latest Short-Term Energy Outlook, it forecast that US production of Other Biofuels will more than double between 2024 and 2025 and increase by about another 20% in 2026. Although it does not publish a forecast for each fuel that makes up the category, we expect increased SAF production to drive most of that growth. Despite strong growth in SAF on a percentage basis, the absolute volumes will remain relatively low, making up less than 2% of about 1.7 million bpd of US jet fuel consumption in 2025 and about 2% in 2026.

Read the article online at: https://www.hydrocarbonengineering.com/clean-fuels/07052025/saf-production-soars-high-in-the-us-with-new-capacity/