Summary: The permitting process is a significant obstacle to scaling SAF production, according to industry leaders who spoke at the SAF Congress in Houston. As companies struggle to meet SAF volume targets for 2030, regulatory hurdles tied to air emissions, water usage, and land use continue to delay large-scale refinery projects. States like Minnesota and Illinois are attempting to streamline the process, but significant challenges remain.
Author: Matthew Fischbacher is an Airline Captain with a wealth of experience in aviation. He brings a unique perspective on Sustainable Aviation Fuel, combining practical expertise with insights into the future of the industry.
Permitting Process: A Major Barrier to Scaling SAF Production
The permitting process for new refinery projects remains a significant obstacle to the widespread upscaling of sustainable aviation fuel (SAF) production. Industry leaders agree that current SAF volume targets for 2030 are unlikely to be met unless these hurdles are addressed. States should take note of this growing concern.
At the SAF Congress in Houston on October 2nd, Bruce Fleming, Executive Vice President of Montana Renewables, emphasized that the permitting process is a critical barrier to scaling SAF. Permitting biofuel production facilities—whether biodiesel, ethanol, or SAF—involves navigating complex regulations related to air emissions, water usage, discharge permits, land use, and more. These regulations are often overseen by different divisions within state and local agencies, and sometimes by entirely separate state agencies, complicating the process further.
Progress can be seen in states like Minnesota, which has recognized the need for reform. According to the February 2024 report Streamlining Minnesota’s Environmental Permitting Process, the Minnesota Chamber of Commerce conducted its first comprehensive analysis of the state’s economic performance in 2021, titled Minnesota: 2030. This report identified Minnesota’s environmental permitting process as a significant barrier to economic growth—an issue that has been echoed by businesses for decades. The report highlights the need for reform, noting, “Addressing Minnesota’s uncertain and lengthy permitting process is one solution to help reverse this trend and spur economic growth in our state.”
The Minnesota Pollution Control Agency (MPCA), which oversees environmental permitting in the state, has taken proactive steps by assembling a dedicated team of biofuels permit engineers. These specialists focus on different aspects of the permitting process, ensuring that the various environmental requirements for biofuel projects are reviewed and processed in a more coordinated and efficient manner.
“Addressing Minnesota’s uncertain and lengthy permitting process is one solution to help reverse this trend and spur economic growth in our state.”
Other states, such as Illinois, are also offering resources for biofuel project developers. For example, Illinois has developed the guide Building an Ethanol Plant in Illinois to help streamline the permitting process. However, the challenge remains in balancing the diverse objectives of these permits while ensuring environmental protections are met.
A prominent example of permitting delays is Aemetis, Inc., a renewable fuels company that recently secured a key Use Permit for its 90-million-gallon-per-year SAF and renewable diesel plant in Riverbank, California. The project, located at a former U.S. Army ammunition plant, is part of the city’s long-term plan for green business development. Although the permit approval from the City of Riverbank under the California Environmental Quality Act (CEQA) marked a significant milestone, it came only after years of engineering and environmental work with various government agencies. Aemetis’ CEO, Eric McAfee, noted that while this approval is crucial, the project will still face months of delays as additional permits from other agencies are finalized. This example underscores how multi-agency approval processes can significantly delay the development of large-scale SAF projects, even when there is strong local government support.
California is frequently cited as one of the most challenging states for permitting renewable energy projects, including SAF production. Under the CEQA, extensive environmental reviews and consultations with multiple agencies, such as the California Coastal Commission, often result in prolonged delays. Even with reforms like Assembly Bill 205, which offers a fast-track permitting pathway, the complex, multi-layered process remains a significant obstacle. The involvement of various agencies with overlapping responsibilities continues to slow down SAF projects, making it one of the toughest environments for SAF and biofuel developers to secure timely permits.
One common suggestion from the industry is to centralize the permitting process under fewer agencies or within dedicated teams focused specifically on renewable energy projects. Illinois, for instance, has provided clear guides for biofuel project developers, offering concrete steps to navigate the permitting maze. Streamlining the process and creating dedicated biofuel permit teams could significantly reduce approval times, helping to make SAF scaling more feasible.