By Michael McAdams
June 24, 2025
Sustainable Aviation Fuel (SAF) has moved from the margins of energy policy to the forefront of America’s energy future. Once viewed as a long-shot innovation, SAF is now a commercially viable, rapidly scaling solution to power our aviation sector while revitalizing rural economies and advancing our national goals for energy dominance. As SAF production accelerates, Congress and the Trump administration have an opportunity to cement America’s leadership in aviation fuel innovations by extending long-term tax credits that support domestic SAF production.
This sector’s momentum is undeniable. The U.S. Energy Information Administration (EIA) recently reported that SAF production in the U.S. surged from 2,000 barrels per day at the end of 2024 to 25,000 barrels per day by February 2025. As of May, production capacity stands at roughly 30,000 barrels daily, and industry projections suggest we could approach 500,000 barrels per year by the end of 2025.
SAF’s explosive growth is a direct response to policy certainty and strategic investment—but we are only getting started. I recently spoke with Alison Graab, Executive Director of the SAF Coalition, about this issue. She rightly noted, “The biggest barrier we hear from our coalition members is the need for a longer-term market signal for SAF investment.” Without it, this American success story and the promise it offers to our country’s economy risks being outsourced.
That’s because SAF, at its heart, is an innovation and jobs engine. The entire SAF value chain—from feedstock cultivation to production and refining—offers new economic lifelines to American farmers and rural communities. These fuels are derived from a wide variety of sources, including agricultural residues, waste oils, and even woody biomass. SAF development creates stable demand for these materials, opening new revenue streams for growers and foresters. During our conversation, Graab concurred about the significant potential offered by SAF, “There are so many additional benefits that really offer a lot of opportunities to this administration and Congress.” Put simply, SAF can transform America’s heartland into an energy innovation engine.
Global demand for SAF is projected to soar as countries implement mandates and incentives to power their aviation sectors. As I spoke with Graab, she highlighted how the United States is well-positioned to lead, with more production facilities online than any other nation. “We can see the U.S. continue to grow that by helping to export and fulfill what other countries need in addition to the U.S.,” Graab emphasized. This growth offers America an important energy diplomacy tool and a new source of revenue through SAF exports. At a time when many nations are competing to develop cutting edge energy technologies, America’s ability to scale SAF production is a geopolitical advantage we cannot afford to squander.
Fortunately, Congress is awake to this challenge and has already taken an encouraging step in the right direction. The One Big Beautiful Bill Act passed by the U.S. House of Representatives includes an extension of the 45Z clean fuels production tax credit through December 2031. This is exactly the kind of long-term policy signal investors need to deploy capital into SAF projects. Extending this credit is a critical win, but more must follow. We must ensure the SAF-specific tax credit structure remains robust, technology- and feedstock-neutral, and predictable over the next decade.
To deliver on SAF’s promise, policymakers must act boldly. Long-term certainty around 45Z and related credits is the clearest path forward. Equally important is for the U.S. Environmental Protection Agency to modernize its regulatory treatment of feedstocks like woody biomass to unlock hundreds of millions of gallons of potential fuels. The American SAF industry knows how to scale. We have the infrastructure, we have the feedstocks, and we have the know-how. Now we need Washington to follow through to unleash this potential to advance our American energy dominance agenda.
The opportunity before us is historic. SAF can power our economy, provide us with a vital diplomatic and international trade tool, and advance American energy dominance. It’s time for Congress to provide the durable policy support that SAF producers need to secure America’s energy leadership.
Michael McAdams is the president of the Advanced Biofuels Association (ABFA). For more information on ABFA click here.