By Scout Nelson
Minnesota is taking steps to become a national leader in sustainable aviation fuel (SAF) production. In a recent Senate Taxes Committee hearing, Senator Rob Kupec (DFL-Moorhead) introduced legislation to expand SAF incentives and support the industry’s growth.
SAF is made from renewable sources such as used cooking oil, municipal waste, and agricultural feedstocks. It plays a crucial role in reducing carbon emissions from aviation. According to the MN SAF Hub, demand for SAF is projected to reach 3.5 billion gallons by 2030, yet domestic production was only 15.8 million gallons in 2022. Expanding production is essential to meeting this growing need.
“Sustainable aviation fuel has the potential to rapidly decarbonize the aviation industry, provide additional revenue streams for a wide array of farmers, communities, and industries, and create good-paying jobs throughout Minnesota. But this only happens if we take steps to bring production to scale,” said Sen. Kupec. “This is more than just a win-win for our state, it’s a win-win-win-win. We can support our farmers, reduce our carbon emissions and grow our economy, and this bill will help us do so.”
The legislation, SF 1312, builds upon an SAF credit established in 2023. It proposes funding of $7.4 million annually from 2025 to 2027 and $2.1 million per year from 2028 to 2035. The bill also revises SAF definitions, encourages lower carbon intensity, and allows unused credits to roll over.
Minnesota’s diverse agricultural sector makes it well-suited for SAF production. Plans are already underway to establish facilities in the state. In November, Moorhead was chosen as the site for a new SAF processing plant, expected to begin operations in 2030 and create 650 jobs.
The proposal has gained bipartisan support, with both Democratic and Republican senators co-authoring the bill. Senate Tax Chair Ann Rest (DFL-New Hope), Senator John Jasinski (R-Faribault), Senator Bill Weber (R-Luverne), and Senator Scott Dibble (DFL-Minneapolis) have joined in backing the initiative.
Following a voice vote, the bill passed through the Senate Taxes Committee and will move to the Senate Floor for further consideration. If approved, it could position Minnesota at the forefront of sustainable aviation fuel production, benefiting the environment, agriculture, and the state’s economy.
Photo Credit: istock-fangxianuo
Categories: Minnesota, Energy