Innovative Funding for Sustainable Aviation Fuel at U.S. Airports

The report identifies a significant price gap between sustainable aviation fuel (SAF) and conventional jet fuel as the primary barrier to adoption. It proposes that U.S. airports, specifically the Port of Seattle at Seattle-Tacoma International Airport, can overcome this by funding 'co-benefits'—such as air quality improvements and greenhouse gas reductions—rather than the fuel commodity itself. The authors evaluate 14 funding mechanisms and recommend a portfolio including corporate support, port taxing authority, general non-aeronautical revenue, and airline agreements to meet an estimated $6 million annual cost for a 1% SAF blend. Additionally, the report explores infrastructure financing, noting that long-term co-benefit procurement contracts can de-risk private investment in regional SAF production.

• The primary obstacle to the large-scale adoption of sustainable aviation fuel (SAF) is the price premium over conventional jet fuel, which was approximately three times the cost of fossil-based fuel at the time of the report.
• U.S. airports are legally prohibited from paying for aircraft fuel as a commodity for private firms, but they can fund 'co-benefits,' which include greenhouse gas reductions, direct air quality benefits, and regional economic development.
• Implementing a 1% airport-wide blend of SAF at Seattle-Tacoma International Airport would reduce CO2 emissions by approximately 23,300 to 31,000 metric tons annually on a life-cycle basis.
• The report recommends a portfolio of four primary funding mechanisms to cover the estimated $6 million annual premium for a 1% SAF blend at Sea-Tac: Corporate Support ($1M–$2.5M), Use of General Non-Aeronautical Revenue ($1M–$4M), Airline Agreements ($380K–$2.3M), and Port Taxing Authority ($360K–$720K).
• To incentivize regional SAF production infrastructure, the most effective airport action is the procurement of SAF co-benefits through medium-to-long-term contracts, which reduces risk for private sector investors.
• The report identifies several federal bioenergy incentives available for SAF infrastructure, including USDA Section 9003 loan guarantees (up to $250 million) and the DOE Section 1703 Loan Program for innovative clean energy technologies.
• The Port of Seattle has limited legal authority to fund production facilities but can use project finance—such as General Obligation Bonds, Port Revenue Bonds, or Green Bonds—for on-airport blending and storage infrastructure.

APA

Benn, A., Hardenbol, C., Klauber, A., Schiller, C., Toussie, I., Valk, M., & Waller, J. (2017). Innovative Funding for Sustainable Aviation Fuel at U.S. Airports. RMI. https://rmi.org/app/uploads/2017/07/RMI_Sustainable_Aviation_Innovative_Funding_SAF_2017.pdf

Chicago

Benn, Annie, Charlotte Hardenbol, Adam Klauber, Craig Schiller, Isaac Toussie, Misha Valk, and Jeff Waller. Innovative Funding for Sustainable Aviation Fuel at U.S. Airports. RMI, 2017. https://rmi.org/app/uploads/2017/07/RMI_Sustainable_Aviation_Innovative_Funding_SAF_2017.pdf.

Wikipedia

{{cite report |last1=Benn |first1=Annie |last2=Hardenbol |first2=Charlotte |last3=Klauber |first3=Adam |last4=Schiller |first4=Craig |last5=Toussie |first5=Isaac |last6=Valk |first6=Misha |last7=Waller |first7=Jeff |title=Innovative Funding for Sustainable Aviation Fuel at U.S. Airports |publisher=RMI |date=July 2017 |url=https://rmi.org/app/uploads/2017/07/RMI_Sustainable_Aviation_Innovative_Funding_SAF_2017.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{benn2017innovative, author = {Benn, Annie and Hardenbol, Charlotte and Klauber, Adam and Schiller, Craig and Toussie, Isaac and Valk, Misha and Waller, Jeff}, title = {{Innovative Funding for Sustainable Aviation Fuel at U.S. Airports}}, institution = {RMI}, year = {2017}, month = jul, url = {https://rmi.org/app/uploads/2017/07/RMI_Sustainable_Aviation_Innovative_Funding_SAF_2017.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }