The FAA has awarded $291 million in grants for sustainable aviation fuel (SAF) and technologies.
The funds, which were authorized under the 2022 Inflation Reduction Act, are geared toward reaching the Biden administration's goal of 3 billion gallons of domestic SAF production annually by 2030, enough to account for 10% of aviation fuel consumption in the U.S.
Most of the money, $244.5 million, will be directed toward 22 projects that produce, transport, blend or store SAF, and for related studies. Examples of such projects include $16.8 million to SAF producer Gevo to convert an existing fuel facility in Luverne, Minnesota into one that refines alcohol into SAF; and $14.6 million to Arcadia, Texas-based Arcadia EFuels for a SAF plant that is projected to produce 23.2 million gallons annually by 2028.
The remaining $46.5 million in grants will go toward other low-emissions aviation projects. For example, the FAA has awarded $8 million to startup JetZero, which is designing a blended-wing aircraft expected to reduce carbon emissions and fuel burn by as much as 50%. Blended-wing designs integrate an aircraft's wings with the fuselage, resulting in a smoother shape than today's tube-and-wing passenger planes, thereby reducing aerodynamic drag and aircraft weight.
This year, global SAF production will triple to 500 million gallons, according to IATA's latest estimate. However, that figure would still amount to just 0.5% of the aviation industry's fuel needs.
The global ramp-up of SAF production has moved slower than earlier estimates, prompting IATA earlier this year to reduce its forecast for SAF production in 2030 by 19%.
Last month, Air New Zealand became the first global carrier to pull back from its 2030 emissions-reduction target, citing the lack of availability and affordability of SAF as one reason.
Airlines have called on governments to do more to subsidize and incentivize SAF production and have also accused major energy producers of not doing enough. But critics also accuse airlines of not dedicating enough resources to SAF and other emissions-reduction initiatives.