U.S. Production of Sustainable Aviation Fuel (SAF) Accelerates, Presenting Opportunities for Small Businesses
As sustainable aviation fuel (SAF) production surges in the United States, small business owners have a compelling opportunity to engage with this rapidly evolving market. Recent data from the U.S. Energy Information Administration reveals that production of Other Biofuels— a category that includes SAF— experienced a remarkable increase, roughly doubling from late 2024 to early 2025.
SAF is gaining attention as a viable alternative to conventional petroleum jet fuel. It is crafted from agricultural and waste feedstocks, making it an eco-friendly choice for the aviation industry. This new momentum in SAF production aligns with the U.S. Environmental Protection Agency’s Renewable Fuel Standard, which incentivizes cleaner fuels through federal and state tax credits, offering small businesses various pathways to participate in the green economy.
One of the highlights from the recent analysis shows that prior to 2025, renewable naphtha and renewable propane dominated the Other Biofuels category, primarily due to the increased output of renewable diesel. However, SAF’s importance in this sector is on the rise, with production capacity jumping from just around 2,000 barrels per day (b/d) at the beginning of 2024 to approximately 30,000 b/d by 2025.
Business owners should consider the implications of this growth as more SAF production plants come online. Major players such as Phillips 66 and Diamond Green Diesel have significantly expanded their capacities in California and Texas, respectively. Smaller projects also contribute to this trajectory; New Rise Renewables commenced production in Nevada, while Par Pacific plans to start operations in Hawaii later in the year.
With SAF production forecasted to more than double between 2024 and 2025, small businesses can tap into this nascent market by exploring service and supply chain opportunities. This might include providing feedstocks for SAF or even engaging in logistics and transportation services designed to cater to the growing demand for sustainable fuels.
Furthermore, the significant expansions in SAF capacity can create ancillary business opportunities, such as consulting services related to compliance with environmental standards and renewable fuel certifications. Small businesses that pivot towards sustainable practices can improve their market positioning as eco-conscious consumers increasingly support businesses with green initiatives.
However, diving into the SAF industry comes with its own unique set of challenges. First, while production is growing rapidly, SAF still represents a tiny fraction of U.S. jet fuel consumption—expected to constitute less than 2% of the market in 2025. Businesses exploring this sector must remain aware of the still-limited market share and focus on niche opportunities that arise within the broader biofuels landscape.
Moreover, the technological and logistical aspects of SAF production can pose hurdles. Small businesses may find it challenging to navigate federal and state regulations or compete with larger corporations that have greater resources for research and development. Adopting innovation while managing operational costs will be a delicate balance that small business owners will need to achieve.
In summary, the burgeoning SAF production presents an enticing opportunity for small businesses willing to innovate and adapt. With governmental incentives and a growing public interest in sustainability, small business owners can find pathways to engage with this promising market. The insights shared by the U.S. Energy Information Administration highlight the evolving landscape of biofuels, giving small businesses a critical overview of where they can potentially fit into the green aviation future.
For more detailed information on the rise of sustainable aviation fuel and its implications, visit the original analysis at EIA.
Image Via Envato: svitlini
