The Department of Energy announced its first two loans Wednesday for fossil fuel-free aviation fuel, giving a nearly $3 billion boost to the fledgling industry.
DOE floated a $1.46 billion loan to biofuels producer Gevo Net-Zero 1 for a facility located in Lake Preston, South Dakota, and a $1.44 billion loan for a Montana Renewables plant in Great Falls, Montana. Montana Renewables is one of only two companies in the U.S. currently producing sustainable aviation fuel (SAF), which has faced obstacles because of its costs.
“The decarbonization of America’s transportation and industrial sectors depends on a significant increase in the production of biofuels,” DOE loan office director Jigar Shah said in a blog post.
He said the loan would “deliver new economic opportunities for agricultural and rural communities across the nation while tackling the climate crisis.”
