The Biden administration is preparing to release short-term guidance on clean fuel tax credits, with final decisions expected to be deferred to the incoming Trump administration. This policy, part of the 2022 Inflation Reduction Act, aims to produce 3 billion gallons of sustainable aviation fuel (SAF) by 2030. However, concerns have been raised by the ethanol industry regarding the exclusion of climate-smart agricultural practices and limited access to SAF production subsidies, signaling potential challenges ahead.

Meanwhile, leading oil companies such as ExxonMobil, Chevron, BP, Shell, TotalEnergies, and Eni are increasing their investments in biofuels, particularly SAF. According to Rystad Energy, these companies have announced 43 biofuel projects, planning to add 286,000 barrels per day to their production capacity by 2030. BP, a frontrunner in this initiative, plans to produce 130,000 barrels per day of SAF to meet growing demand.

In the aviation sector, innovative methods are being explored to produce SAF, including converting domestic agricultural products like canola oil. Notably, Sydney Airport is considering repurposing the former Kurnell oil refinery into a facility that would produce SAF, leveraging existing infrastructure to support the transition to greener aviation fuels.

To further promote sustainable biofuels, the Global Biofuels Alliance (GBA) was launched during the 2023 G20 summit in New Delhi. Comprising 22 countries and 12 international organizations, the alliance aims to establish standards and certifications to streamline the global biofuel market.

In another significant development, Indonesia has increased its biodiesel production quota for 2025 by 20%, with the implementation of a 40% blending mandate. This initiative focuses on expanding the use of palm oil-based biodiesel in the transportation sector, reinforcing the country’s commitment to renewable energy and sustainability.