Consumer demand driving sustainable aviation fuel market
Consumer demand is expected to launch the sustainable aviation fuel market, providing additional revenue streams for farmers.
Compeer Financial managing director for new markets Bryan Stanek says polling by National Geographic shows more than a third of Americans are willing to pay more to fly if it helps offset their carbon footprint.
“Boy, we can really start to see the conversation starting to take place because I think Big Oil is looking for solutions for alternatives, I think you’re looking for investors in this neck of the woods to solve (and) follow that consumer demand. But as long as consumers are demanding to look for a solution, there will be markets that will present itself.”
He tells Brownfield the sustainable aviation fuel market represents a huge opportunity to reduce carbon emissions.
“And I think that’s why it’s being chased. So let’s just round it to 30 billion (gallons), because obviously we grow that demand every year, basically none of that is sustainably produced today. Whereas our automobile fleet right now, 8 to 15 percent of our fuel is blended to ethanol.”
And he expects the sustainable aviation fuel market to grow similarly to ethanol, with infrastructure being built and the government adjusting blending rates as buyers emerge.
Stanek made these comments during a Compeer Financial What’s Happening podcast, a content partnership with Brownfield.