Minnesota SAF Hub Launches First-of-Its-Kind Coalition to Scale Sustainable Aviation Fuel

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August 30, 2023

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(Minneapolis St. Paul Regional Economic Development Partnership/Globe Newswire) Growing SAF Hub seeking new members to accelerate progress -- A first-of-its-kind coalition is launching in Minnesota to scale sustainable aviation fuel (SAF) with the urgency commercial aviation needs to reach net zero by 2050.Through the GREATER MSP Partnership, Bank of America, Delta Air Lines, Ecolab and Xcel Energy have established the Minnesota SAF Hub – the first large-scale SAF Hub in the U.S. with unparalleled collaboration among key players across the value chain committed to scaling SAF production to replace conventional jet fuel. These anchor members are joined by other leading institutions, including the State of Minnesota, to implement an ambitious shared strategy for aggressively decarbonizing the airline industry.

This multi-year strategy is rooted in commitments to:

Environmental and water stewardship at all points along the SAF value chain beginning with feedstock – not at the airport – and at every step of the SAF production process.
Producing affordable, low-carbon SAF by developing an integrated value chain that stretches from production source and processing to refining, blending and use at Minneapolis-Saint Paul International Airport (MSP).
Fostering adoption of innovative solutions and technology breakthroughs to accelerate the SAF transformation journey and scale up commercial progress.
Supporting university and private-sector research and collaboration to address scientific and technical hurdles associated with the commercially viable production of ultra-low carbon SAF from regenerative agricultural inputs.

SAF is the best decarbonization lever the aviation industry has in the near- to mid-term on its journey to net zero. While airlines globally have committed to purchasing billions of gallons of SAF over the next few decades, there isn’t enough being produced currently to fuel commercial airlines globally for a single day.

Third on the World Economic Forum’s list of Top 10 Emerging Technologies of 2023, SAF is a safe, fully certified jet fuel that can be used in today’s aircraft engines and transported via existing pipeline infrastructure. Produced from many sources including renewable feedstocks and used cooking oil, SAF can reduce lifecycle carbon emissions of aviation by more than 80% - meaning exponentially fewer emissions from SAF than traditional jet fuel.

After eight months of behind-the-scenes collaboration, the coalition will share its ambitious objectives today (August 29, 2023) at the North American SAF Conference and Expo in Minneapolis. Progress to date includes establishing a shared, multi-phase strategy, securing nation-leading financial incentives from the State of Minnesota, and building a growing coalition of Minnesota-based organizations including the anchor companies, State of Minnesota, the Metropolitan Airports Commission, the University of Minnesota, and knowledge partner McKinsey & Company.

A Phased Approach to Scaling Sustainable Aviation Fuel Production in Minnesota
The Minnesota SAF Hub coalition is deploying a multi-phased approach to scaling production that begins with promoting the flow of SAF into the state and extends to supporting a robust and flexible SAF production infrastructure. The coalition is balancing pragmatism and ambition by using existing technologies to make progress as quickly as possible, while accelerating the technologies with the greatest carbon reduction potential.

Immediately – Scale Quickly Using Existing Feedstocks and Facilities

Bring SAF flow into Minnesota: As early as 2025, the coalition aims to bring commercial-scale volumes of affordable, low-carbon SAF to the Minneapolis-Saint Paul (MSP) International Airport from out of state. Minnesota’s SAF tax credit, passed by the Minnesota Legislature and signed into law by Governor Walz, makes Minnesota among the most attractive states in the nation to produce and blend SAF.
Engage SAF Producers: The coalition is working with current and prospective producers to increase SAF production in Minnesota in quantities required to meet the coalition’s existing emission reduction goals.
Expand the Coalition: The coalition will welcome additional SAF producers, investors, corporate partners, and broader value chain players.

Next – Accelerate Greenhouse Gas Reductions through Innovations in Agriculture

New Jet Fuel Production: SAF production begins in Minnesota, including the use of new and existing infrastructure and assets with a focus on transforming Minnesota ethanol to jet fuel.
Regenerative Agriculture: The coalition will work to further reduce the carbon intensity of SAF by incorporating carbon capture and regenerative agricultural practices and crops.

On the Horizon – Maximize Scale and Greenhouse Gas Reductions with Advanced Technology

The coalition will leverage a flexible and data-driven approach as SAF technology and research matures. Power-to-liquid, for example, is a pathway that generates SAF from clean hydrogen and carbon that may allow greater emissions reductions and fewer constraints on supply. Minnesota is well positioned to be a global competitor in the production of Power-to-liquid, given its ready access to affordable renewable resources, particularly wind, and proximity to bio-based carbon sources.

The Minnesota SAF Hub will accelerate commercial scaling of SAF. Strong policy support is complemented by a rich agriculture landscape, economical renewable energy sources, research and development capabilities, existing aviation fuel infrastructures and strong demand for jet fuel at MSP where Delta, alone, uses around 250 million gallons annually to power its operations – one of its largest global hubs. Through the combined efforts of this coalition and corporate partners, Delta aspires to use SAF for more than 10% of its fuel at MSP by 2027, with sights set on 50% by 2035.

To achieve its ambitious volume targets, the Minnesota SAF Hub coalition is actively recruiting forward-thinking producers and investors similarly committed to establishing Minnesota as a leader in sustainable aviation. We are seeking to assemble a collection of players along the value chain at a scale that has not yet been achieved anywhere in the world. Interested parties from around the world are encouraged to contact GREATER MSP directly to learn more.

Leaders Focused on Coalition’s Critical Mission
“Our SAF Hub will accelerate progress toward decarbonizing the airline industry nationally while also creating thousands of good jobs across Minnesota,” said president and CEO of the GREATER MSP Partnership, Peter Frosch. “It is good news that some of the world’s most innovative companies are combining forces to build SAF production at the scale the market demands and at a pace the climate requires. Together, we are recruiting the next set of partners to join this effort to build an integrated SAF value chain in the center of North America’s economy.”

“The Minnesota SAF Hub is the game changer aviation needs to start producing SAF at the volumes required to meet our aggressive goals,” said Delta CEO, Ed Bastian. “This coalition of heavy hitters from across the SAF ecosystem are collaborating to rapidly scale production, demonstrating the power of partnerships to meet our shared goal faster than any of us could do on our own.”

“We know from experience that the path to building a sustainable future requires collective action,” said Ecolab chairman and CEO, Christophe Beck. “It was important for Ecolab to join other industry leaders on day one of the Minnesota SAF Hub, as our process innovation and technology expertise can help the coalition scale to meet the challenge and opportunity of sustainable aviation.”

“SAF is a next-generation technology that will help us advance our vision of providing net-zero energy to our customers by 2050,” said chairman, president and CEO of Xcel Energy, Bob Frenzel. “We’re excited to support carbon reductions in the transportation sector by supplying carbon-free electricity and clean fuels like hydrogen and renewable natural gas, spurring commercial-scale SAF production in our headquarters state of Minnesota. This coalition also allows Xcel Energy to explore other end uses for SAF, including as a clean fuel for power generation and home heating.” READ MORE

Delta, Xcel, Ecolab want to make Minnesota a player in sustainable aviation fuel (Minneapolis/St. Paul Business Journal)

GPI Applauds Launch of Coalition to Advance Sustainable Aviation Fuels in Minnesota (Great Plains Institute)

Soy powered planes? Minnesota hopes to be a hub for sustainable aviation fuels (MPR News)

Delta Air Lines launches Minnesota SAF coalition (Quantum Commodity Intelligence)

New coalition announced to grow the sustainable aviation fuel industry in Minnesota (KIMT3)

New Partnership Plans to Boost SAF Production in Minnesota (Business Travel News)

Delta Air Lines and partners establish Minnesota SAF hub (CAPA Center for Aviation)

Klobuchar Statement on the Launch of the Minnesota Sustainable Aviation Fuel Hub (Office of U.S. Senator Amy Kolbuchar (D-MN))

Coalition Plans to Launch Large-Scale Minnesota SAF Hub (Environment + Energy Leader)

Minnesota SAF Hub launches first-of-its-kind coalition to scale sustainable aviation fuel (Delta Airlines)

Excerpt from Office of U.S. Senator Amy Klobuchar (D-MN): Klobuchar long-time advocate in Congress for aviation biofuel -- U.S. Senator Amy Klobuchar (D-MN) released the following statement on the launch of the Minnesota SAF Hub. Established through the GREATER MSP Partnership, this coalition made up of companies including Bank of America, Delta Air Lines, Ecolab, and Xcel Energy have come together to form the first large-scale sustainable aviation fuel (SAF) Hub in the U.S. committed to scaling SAF production to replace conventional jet fuel. The partnership will help produce affordable, low-carbon SAF in Minnesota by processing, refining, and blending to be used at Minneapolis-Saint Paul International Airport (MSP).

“Homegrown sustainable aviation fuel is not only an economic generator for communities across the state, it’s also an important tool to help us reduce our carbon footprint. The work of this partnership will help expand access to biofuels for Minneapolis-St. Paul Airport, making aviation more sustainable and reducing our dependence on foreign oil. It will also support farmers, producers, and good-paying jobs across rural America.”

SAF is made from renewable biomass and waste resources and has the potential to deliver the performance jet fuel with a carbon footprint at least 50 percent lower than traditional fuel. At MSP International Airport, 17 commercial carriers consume 400 million gallons of jet fuel each year. MSP is committed to achieving 10 percent SAF in its U.S. operations by 2030.

Klobuchar has long supported legislation to make higher blends more readily available.

In June 2023, Klobuchar joined Senators Tammy Duckworth (D-IL), Deb Fischer (R-NE), Joni Ernst (R-IA), and Chuck Grassley (R-IA) in introducing the Sustainable Aviation Fuels Accuracy Act, comprehensive bipartisan legislation to identify the standards required to meet the definition of sustainable aviation fuel (SAF) at the Federal Aviation Administration (FAA).

In June 2021, Klobuchar announced the introduction of a new package of bipartisan bills to expand the availability of low-carbon renewable fuels, incentivize the use of higher blends of biofuels, and reduce greenhouse gas emissions.

In 2021, Klobuchar and Senator Joni Ernst (R-IA) reintroduced bipartisan legislation to create a renewable fuel infrastructure grant program and streamline regulatory requirements to help fuel retailers sell higher blends of ethanol. READ MORE