US Economy to Benefit from Federal SAF Incentives at Gevo’s Planned Net-Zero 1 Facility

08/13/2024 08:00:00

Gevo Inc. has released a new report from Charles River Associates (CRA) outlining the benefits of producing sustainable aviation fuel (SAF), including Gevo’s planned Net-Zero 1 (NZ1) facility to process alcohol-to-jet fuel (ATJ) into SAF in South Dakota, USA.

CRA’s findings in the report show that every $1.00 in federal tax credits for ATJ SAF yields an estimated $4-6 in total measurable benefits. The research commissioned by Gevo also shows how the proposed NZ1 facility is expected to directly support local economies, reduce emissions and improve U.S. energy security.

“Practical, cost-effective products like SAF bring clear benefits to our communities. We believe that not only will sustainable aviation fuel produced at NZ1 be cost-effective, but it will also help reduce emissions, create good-paying jobs and strengthen agricultural markets across the country. It doesn’t have to be a trade-off. This report shows that reducing greenhouse gas (GHG) emissions in a business system like ours benefits all of us, beyond the economics of the project,” said Lindsay Fitzgerald, Senior Vice President of Public Affairs at Gevo. “The exciting benefits of NZ1 are not limited to South Dakota – Gevo has identified several potential sites in other states. We look forward to replicating these efforts in other communities and appreciate the continued collaboration with our federal partners to make this and other facilities a reality.”

The report, prepared by the CRA, shows that NZ1 would be a game-changer in scaling up SAF production and improving the livelihoods of local communities. To achieve the industry’s net zero emissions targets and provide farmers with the necessary certainty, it is essential to facilitate significant reductions in the carbon footprint of aviation fuel. Key findings from the report include:

Energy and environmental benefits

• $2/gallon hits avoided reduced life cycle greenhouse gas emissions by replacing fossil aviation fuel with ATJ SAF fuel
• Replacing fossil fuels with ATJ SAF jet fuel generates $0.12/gal in avoided health impacts due to reduced in-flight particulate matter emissions
• Implementing climate-smart farming practices results in improved air and water quality, reduced greenhouse gas emissions, and more money in the pockets of farmers who can grow crops instead of conventional farming practices, worth $0.90/gal
• Improving energy security choosing local solutions, which resulted in the expansion of national infrastructure and jobs, continued cooperation with agriculture and wider distribution of aviation fuel production throughout the country.

Local economic benefits

• It provides 116 million dollars value added annually to the local economy as a result of direct, indirect and induced effects of expected NZ1 activities
• Supports 100 jobs in the NZ1 plant and creates an additional 736 local job offers
• It adds economic value that is returned to the federal government in the form of tax revenues, estimated at $23 million per year Or $0.38/gal SAF per year
• Adds a temporary benefit $184 million in local economic value and support for 1,266 jobs NZ1 under construction.

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