
Houston, Texas – As the aviation industry continues to search for cleaner fuel alternatives, Nebraska is stepping up as a major contributor to the future of sustainable aviation fuel (SAF). At the Sustainable Aviation Futures Congress in Houston, Rep. Mike Flood, who spoke on October 3rd, discussed the state’s plans to become a key player in SAF production, leveraging its agricultural strength and legislative support.
A significant part of Nebraska’s strategy revolves around LB937, a newly passed tax credit designed to incentivize SAF production. This credit, worth $0.75 per gallon, is targeted at SAF that achieves at least a 50% reduction in lifecycle emissions. The emissions calculations will follow the GREET model developed by Argonne National Laboratory, ensuring consistency with industry standards.
“Nebraska is ready to lead the next great biofuels revolution—one that produces Sustainable Aviation Fuel, strengthening our agricultural economy.” — Rep. Mike Flood
Economic and Legislative Momentum
The introduction of LB937 aligns with Nebraska’s broader commitment to renewable energy and agricultural development. The state’s robust biofuel infrastructure, particularly its corn production, places Nebraska in a prime position to utilize corn and agricultural by-products like stover as feedstock for SAF. These developments mark Nebraska’s entry into the SAF market, creating new investment opportunities for biofuel producers and the agricultural sector.
Industry players such as DG Fuels have also recognized Nebraska’s potential. The company has announced plans to establish a SAF production plant in Phelps County, which is expected to produce 193 million gallons of SAF annually by 2030. The facility will use agricultural by-products like corn stover and clean hydrogen to produce low-carbon fuel. This project could generate significant economic benefits for local farmers and create hundreds of quality jobs in the region.
Nebraska’s Role in the SAF Revolution
The SAF Congress event in Houston served as a platform for Nebraska to solidify its growing role in SAF production. Speakers across the industry discussed the importance of feedstock availability, and Nebraska’s extensive agricultural output makes it a vital player in the long-term development of sustainable fuels. With growing demand for SAF globally and the implementation of blending mandates in various countries, Nebraska’s strategic positioning in this sector is a significant economic opportunity.
The state’s leadership sees this moment as a new chapter for Nebraska’s agricultural economy, highlighting the potential for SAF to contribute to the state’s future. While challenges such as scaling up production and ensuring competitive pricing remain, Nebraska’s policy framework and commitment to innovation make it well-equipped to navigate these hurdles.
Conclusion
Nebraska’s focus on SAF production reflects a larger vision of expanding its bioeconomy while contributing to aviation’s decarbonization efforts. By implementing tax incentives and attracting investment from companies like DG Fuels, Nebraska is positioning itself as a national leader in the next generation of renewable fuels.