Nebraska leads the flight in green jet fuel revolution

By Scout Nelson

Nebraska is poised to become a leader in the sustainable aviation fuel (SAF) industry with the introduction of a new tax credit aimed at boosting the production of renewable jet fuel. Governor Pillen recently signed legislation, making Nebraska the first state in the Midwest to implement such a measure.

During the 2024 legislative session, Senator Dungan championed the cause with LB1072, designed to incentivize the production of SAF that slashes emissions by at least 50% compared to traditional jet fuel. Although LB1072 initially lacked priority designation, it was successfully incorporated into Senator Bostar’s LB937 and passed unanimously.

The Nebraska Ethanol Board highlights that local resources, including ethanol and oils derived from corn and soybeans, are ideal low-carbon feedstocks for SAF production. These materials not only support the local agricultural economy but also contribute to significant emission reductions.

Producers can determine their emissions savings using established models like the GREET model or the International Civil Aviation Organization model.

The financial incentives under the new law are robust, offering $0.75 per gallon for SAF that meets the emission reduction standards, plus an additional $0.01 per gallon for each percentage point reduction above 50%. This tax credit is available for five years starting in 2027.

As one of the top producers of corn and soybeans, Nebraska's new tax credit not only supports local agriculture but also places the state at the forefront of the burgeoning SAF market. This market is expected to grow from $1.1 billion in 2023 to an impressive $16.8 billion by 2030, reflecting a compound annual growth rate of 47.7%.

With this strategic move, Nebraska will become a central hub for sustainable and renewable jet fuel production, contributing significantly to global efforts in reducing aviation emissions and promoting green energy solutions.

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