WASHINGTON, D.C. — The U.S. sustainable aviation fuel (SAF) industry is gaining momentum, with production capacity reaching an estimated 30,000 barrels per day (b/d) by early 2025, a dramatic leap from just 2,000 b/d at the start of 2024. According to the U.S. Energy Information Administration (EIA), this growth, primarily driven by hydroprocessed esters and fatty acids (HEFA) pathways, reflects a strategic push to scale low-carbon fuels amid robust policy support and rising airline demand.
In late 2024, two major projects significantly boosted SAF capacity. Phillips 66 completed its 10,000-b/d SAF project at its Rodeo, California, refinery in the third quarter, though production was temporarily halted in Q4 due to operational adjustments. Meanwhile, Diamond Green Diesel brought its 15,000-b/d SAF facility in Port Arthur, Texas, online in Q4, marking a cornerstone in U.S. SAF expansion. These facilities, leveraging HEFA technology to process agricultural and waste feedstocks, have positioned SAF as the dominant driver of the EIA’s “Other Biofuels” category, which doubled in production from December 2024 to February 2025.
Smaller players are also contributing. New Rise Renewables began SAF production in February 2025 at its Reno, Nevada, plant, adding up to 3,000 b/d. Par Pacific is set to launch a 2,000-b/d SAF facility in Kapolei, Hawaii, in the second half of 2025. These additions underscore the scalability of HEFA, which benefits from its compatibility with existing refinery infrastructure and ability to produce drop-in fuels blendable up to 50% with conventional jet fuel.
Policy incentives are a critical enabler. The U.S. Environmental Protection Agency’s Renewable Fuel Standard (RFS), combined with federal and state tax credits, has spurred investment in SAF infrastructure. “Investments in SAF have increased because of the U.S. Environmental Protection Agency’s Renewable Fuel Standard (RFS), federal tax credits, and state programs,” the EIA noted, highlighting the role of these mechanisms in offsetting high production costs compared to petroleum jet fuel.
“Investments in SAF have increased because of the U.S. Environmental Protection Agency’s Renewable Fuel Standard (RFS), federal tax credits, and state programs.” — U.S. Energy Information Administration
Despite the surge, SAF’s market share remains modest. The EIA projects SAF will account for less than 2% of the 1.7 million b/d U.S. jet fuel consumption in 2025, rising slightly in 2026. Production of Other Biofuels, which includes SAF, hit 33,000 b/d in January 2025 and climbed to 44,000 b/d in February, a 30% month-on-month increase. The EIA’s Short-Term Energy Outlook forecasts Other Biofuels production will more than double from 2024 to 2025 and grow another 20% in 2026, with SAF as the primary driver.
Challenges persist, including feedstock constraints and the high capital intensity of HEFA facilities. The temporary halt at Phillips 66’s Rodeo plant signals potential operational hurdles, while the industry grapples with securing sustainable lipid feedstocks like used cooking oil and animal fats. Nevertheless, the HEFA pathway’s commercial maturity positions it as the backbone of the U.S. SAF Grand Challenge, which aims for 3 billion gallons of SAF annually by 2030.
As airlines and regulators align on net-zero goals, the rapid buildup of HEFA-based SAF capacity signals a pivotal shift, though scaling to meet ambitious targets will require sustained innovation and policy support.
