SAF demand could drive expansion of new oilseed crops in the US

Growing production of sustainable aviation fuel (SAF) is creating new opportunities for US agriculture and could encourage farmers to expand production of additional oilseed crops. Industry representatives at the Global Aerospace Summit said traditional feedstocks, particularly soybeans, may not be sufficient to meet future renewable fuel demand.

One promising option is expanding production of canola, camelina and CoverCress. These crops can be grown between corn and soybean seasons, utilizing farmland during periods when it would otherwise remain fallow. This could increase oilseed feedstock supplies without directly reducing corn or soybean acreage.

According to CoverCress CEO Jim Hedges, the US already crushes large volumes of soybeans, while opportunities to significantly expand soybean acreage are limited. As demand for different types of renewable fuels grows, additional feedstocks will be needed. By the early 2030s, acreage planted with emerging oilseed crops could reach hundreds of thousands of acres.

Greater clarity around the federal 45Z tax credit and carbon intensity calculations is providing additional support for SAF development in the US. Global demand is also being supported by SAF mandates in the EU. Scaling up the industry will require further investment in production, transportation, storage and fuel-blending infrastructure.

SAF development could therefore create an additional market for US oilseed growers and a new source of revenue from existing farmland. At the same time, increased use of vegetable oils in the fuel sector is likely to intensify competition for feedstocks among food producers, biodiesel, renewable diesel and SAF.

Tags: canola, soybean, oilseeds, USA, SAF, expansion