ADM Sees Its Sustainable Aviation Fuel Coming Online by 2026
by P.J. Huffstutter (Reuters) Global grain merchant Archer Daniels Midland Co sees the commercialization of its sustainable aviation fuel (SAF) efforts coming online around 2026, Chief Financial Officer Vikram Luthar said on Monday.
“SAF in terms of reality to come online, at least for us, is going to be in the 2026 type of time frame,” said Luthar, speaking at the BMO Capital Markets 2022 Growth & ESG Conference.
He said investment in the SAF sector will be needed to help commercialize sustainable jet fuel but such investment would not necessarily come from ADM.
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“We believe there’s enough economic incentive for SAF to be profitable and to be a viable blend for jet fuel,” he said, adding that in some circumstances, “we believe there is some profitability already in SAF.”
Luthar also said the U.S. Environmental Protection Agency’s proposal of renewable volume obligations is a positive move for the biofuel industry that “establishes a floor, not a ceiling for demand going forward.”
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“There’s an opportunity to convert 900 million gallons of our ethanol into about 500 million gallons of SAF,” Luthar said, noting that the federal Inflation Reduction Act will likely accelerate and expand investment in the sector. READ MORE