Daily Newsletter

02 November 2023

Daily Newsletter

02 November 2023

US airlines and ethanol industry send letter to US Government concerning SAFs

The two industries want to make it easier for sustainable aviation fuel (SAF) made from corn-based ethanol to qualify for federal subsidies.

Alfie Shaw November 02 2023

Ethanol companies and major US airlines have co-authored a letter to the Biden administration supporting regulatory change that would make it easier for SAF made from corn-based ethanol to qualify for federal subsidies.

Under the Inflation Reduction Act, SAF producers have to cut their fuel emissions over gas by 50%  using an emissions model developed by the International Civil Aviation Organization (ICAO), or “similar methodology”.

In a letter to Treasury Secretary Janet Yellen, airlines such as Delta, JetBlue and Southwest, and companies including Boeing and GE Aerospace, said the Department of Energy’s Greenhouse Gases, Regulated Emissions and Energy Use in Technologies model should be allowed alongside the one developed by the ICAO. The ethanol industry made the same request.

The letter, which was signed by ethanol companies including Poet and Archers-Daniels-Midland, said: “With the right market signals, we can de-carbonize aviation and spur a new wave of US innovation and clean energy jobs. However, modelling uncertainty today is a multiyear development problem.”

The letter was received by the White House yesterday, on the same day President Biden started his rural tour of the country in Minnesota.

The Treasury has the final decision on which modelling is chosen, but the agriculture, environment and energy departments have stepped in to mediate.

According to Reuters, the Treasury will make a decision in December.

SAFs are gaining prominence around the world. In September, the European Parliament accepted new rules that will increase the quantity of SAF required in flights departing from EU airports. The rules stipulate that a steadily increasing amount of green jet fuel must be blended with kerosene, with the level increasing every five years.

The law must still gain approval from member states in the European Council before being passed and coming into force on 1 January 2024.

Quantum computers could transform oil and gas research

Although quantum computing is still in the R&D stage, its potential use cases in the oil and gas industry are numerous and are likely to expand. Oil majors, such as BP and ExxonMobil have joined IBM’s Q Network to develop quantum computers that will increase the understanding of subsurface geology. Companies are also looking at these computers to study molecular modeling and emission mitigation. Besides, the long-standing problems of matching demand with production and optimizing supply chains could be solved using quantum computing.

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