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UK SAF mandate comes into force

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By Erin Krueger

January 06, 2025

Sustainable Aviation Fuels Markets Policy 

The U.K.’s sustainable aviation fuel (SAF) mandate officially came into force on Jan. 1. By law, SAF must now account for at least 2% of all jet fuel in flights taking off from the U.K. The mandate is set to expand to 10% in 2030 and 22% in 2040.

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U.S. manufacturers produced approximately 860,000 tons of densified biomass fuels in September, according to the U.S. Energy Information Administration. Sales of densified biomass fuel reached 900,000 tons during the month.

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CoBank predicts that U.S. production of renewable diesel and associated fuels will experience a modest boost in 2025 but cautions that policy uncertainty looms over administration of the RFS program, SREs and the impact of potential tariffs.

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The value of U.S. tall oil exports to Finland and Sweden increased significantly last year, according to a report filed with the USDA. The increase is primarily attributed to increased demand for tall oil as an advanced biofuel feedstock.

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The U.S. exported 839,226.4 metric tons of wood pellets in October, down from 898,128.2 metric tons the previous month, but up from 835,490.8 metric tons in October 2023, according to data released by the USDA on Dec. 5.

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California Senate Minority Leader Brian Jones, R-San Deigo, on Dec. 2 introduced a bill that aims to repeal the Low Carbon Fuel Standard regulations approved by the California Air Resources Board on Nov. 8.

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The U.K. is expected to import a record 9.641 million metric tons of wood pellets in 2024, according to a report filed with the USDA in November. The majority of those imports will come from U.S.-based pellet producers.

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In 2024, the U.S. East Coast became a consistent destination for small volumes of renewable diesel as a few suppliers and local governments began offering or consuming the fuel, according to the U.S. Energy Information Administration.

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The U.K.’s sustainable aviation fuel (SAF) mandate was signed into law on Nov. 18 and is set to come into force on Jan. 1, 2025. The government has also launched a new Jet Zero Taskforce to revamp efforts to make greener air travel a reality.

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The International Trade Administration has announced its Renewable Energy and Energy Efficiency Advisory Committee will hold a virtual opening meeting on Dec. 3. The meeting is the first of REEEAC’s current charter term.

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U.S. manufacturers produced approximately 930,000 tons of densified biomass fuels in August, according to the November edition of the U.S. Energy Information Administration’s Monthly Densified Biomass Fuels Report.

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CARB on Nov. 8 approved updates to its LCFS that aim to reduce the CI of the state’s transportation fuel by 30% by 2030. The updates also alter how a variety of biofuels, including biobased diesel and RNG, participate in the program.

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The journey of establishing a successful wood pelleting operation in Pakistan has been both challenging and rewarding.

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The U.S. exported 898,128.2 metric tons of wood pellets in September, up from both 775,856.9 metric tons the previous month and 797,296.4 metric tons in September of last year, according to data released by the USDA on Nov. 5.

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Missouri Attorney General Andrew Bailey on Nov. 1 sent a letter to the California Air Resources Board demanding the agency rescind proposed changes to its LCFS. CARB is expected to vote to adopt proposed LCFS amendments on Nov. 8.

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U.S. manufacturers produced approximately 850,000 tons of densified biomass fuels in July, according to the U.S. Energy Information Administration. Sales of densified biomass fuel reached 920,000 tons during the month.

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Exciting progress has been made on the U.S. SAF Grand Challenge, which was the focal point of discussion at the North American SAF Conference & Expo.

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U.S. wood pellet exports fell to 775,856.9 metric tons in August, down from both 874,596.1 metric tons exported the previous month and the 1.01 million tons exported in August 2023, according to data released by the USDA Foreign Agricultural Service on Oct. 8.

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A report filed with the USDA FAS Global Agricultural Information Network discusses how China’s domestic biobased-diesel industry has been impacted by the European Union’s provisional antidumping duties on biodiesel and renewable diesel.

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Legislation introduced in the California State Assembly on Sept. 11 aims to prevent the California Air Resources Board from amending the state’s Low Carbon Fuel Standard regulations prior to Jan. 1, 2026.

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The U.S. exported 874,596.1 metric tons of wood pellets in July, up from both the 739,277.2 metric tons exported in June and the 651,698.8 metric tons exported in July 2023, according to data released by the USDA on Sept. 4.

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U.S. manufacturers produced approximately 910,000 tons of densified biomass fuels in May, according to the August edition of the U.S. EIA’s Monthly Densified Biomass Fuels Report. Sales of densified biomass fuel reached 840,000 tons.

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The Iowa Biodiesel Board and Iowa Soybean Association are concerned proposed amendments to the California Low Carbon Fuel Standard would impose caps on credits for soy- and canola-based biodiesel and renewable diesel.

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The U.S. exported 739,277.2 metric tons of wood pellets in June, down from both 926,024.1 metric tons the previous month and 866,131.6 metric tons in June 2023, according to data released by the USDA Foreign Agricultural Service on Aug. 6.

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In the first five months of 2024, U.S. imports of renewable diesel averaged 30,000 barrels per day (b/d), approaching the monthly record set in May 2023. Most of the imports (94%) were destined for the U.S. West Coast.

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Thailand’s newly proposed National Energy Plan is expected to set a target for sustainable aviation fuel (SAF) starting in 2026, according to a report filed with the USDA. The plan also includes targets for ethanol and biodiesel.

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The U.K. Department for Transport on July 22 sent a written statement to the U.K. Parliament confirming that, subject to Parliamentary approval, the agency will introduce a sustainable aviation fuel (SAF) mandate starting on Jan. 1, 2025.

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American Airlines consumed 2.7 million gallons of SAF in 2023, according to its 2023 Sustainability Report. While that volume of SAF use was up 4% when compared to 2022, it accounted for less than 1% of total fuel use during the year.

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Renewable diesel margins could experience a modest increase this fall, according to CoBank’s latest Quarterly Research Report. If realized, that boost to margins could mitigate softening demand for soybean oil in the biofuel market.

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