U.S. Renewable Jet Fuel Production Soars Despite Covid

This article first appeared on the BNEF mobile app and the Bloomberg Terminal.

  • Production rebounds to quadruple from previous quarter
  • More airlines, airports working to secure bio-jet supplies

U.S. production of renewable jet fuel jumped to over 1 million gallons in 2Q 2020 – almost double the output from a year earlier and a fourfold increase from 1Q 2020.

Despite a lackluster 1Q in which bio-jet production was the lowest in five years, 2020 is now on track to exceed 2019 levels by 30%.

Supply of other types of biofuels, including biodiesel, declined in 2Q as demand for road fuels slumped. But production of bio-jet has remained resilient despite the disruption wreaked on the aviation sector by Covid-19. This could be because offtake agreements between airlines and producers are coming into force this year. For example, Fulcrum Bioenergy Inc. has agreements to supply fuel to AirBP and Cathay Pacific Airways Ltd. commencing in 2020.

An increasing number of airlines and airports are partnering with producers to secure supply of bio-jet fuel, including Delta Air Lines Inc. with Gevo Inc., and Neste supplying sustainable aviation fuel to San Francisco airport.

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