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Future of sustainable aviation fuel in Montana, U.S. depends on policy
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Montana is a U.S. leader in the growing industry of sustainable aviation fuel. Experts in the field, and in the agricultural sector, hope to see new policies to support its development.
Sustainable aviation fuel can be made from a variety of agricultural inputs, including seed crops, which produce oils processed into fuel with a low-carbon footprint. Industry growth could mean new buyers for ag producers in the state, where Montana Renewables was the highest domestic producer of sustainable aviation fuel last year.
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Bruce Fleming, CEO of the company, said China and Brazil are outpacing U.S. growth.
"If we can get our policy figured out, if we can get American innovation going and not fall behind, then we've got solutions here that will benefit the ag sector, particularly the farmers and ranchers," Fleming explained.
In terms of policy, Fleming acknowledged the "goalposts keep moving," because they vary between agencies at the state and federal levels, making it difficult to plan. He hopes to see policies that embrace the SAF innovation, as the nation did for ethanol.
Nicole Rolf, senior director of government affairs for the Montana Farm Bureau Federation, said the opportunity for farmers to grow and market new commodities is enticing, but she will be watching for tax credits and other policies to support producers.
"How do we make sure that we put the right incentives in place so that we're truly using American-grown feedstocks, and crops and commodities, to feed these sustainable aviation-fuel suppliers?" Rolf asked.
The industry sees both challenges and benefits in Montana. For instance, there are currently no local oilseed crushers, so farmers must ship seeds for processing out-of-state. Rolf pointed out Montana is prepared to ship the finished product by rail and other means, as it already does for other energy products.