what ’ s working
the bioenergy programs at the Pacific Northwest National Laboratory ( PNNL ), which has a main campus in the Tri-Cities .
PNNL and Washington State University collaboratively run the Bioproducts Institute , which has a mission of “ keeping carbon in play ,” Drennan said . The goal is to use carbon that ’ s already on the ground – rather than underground – for difficult-todecarbonize sectors , like aviation .
“ For aviation , you have to have a liquid fuel for decades to come ,” she said .
At the Bioproducts Institute – which AWB toured on its 2022 Manufacturing Week Bus Tour – scientists are developing ways to convert everything from kitchen scraps , wastewater and industrial gasses into jet fuel .
“ I think the Pacific Northwest is an ideal place to stand up manufacturing of sustainable aviation fuels . You ’ ve got Boeing , you ’ ve got airlines , you ’ ve got a national lab , and WSU ,” Drennan told Washington Business .
The state ’ s new policies include a preferential B & O tax rate for the manufacturing and wholesaling of SAF , plus a B & O and public utilities tax credit for SAF sales and purchases . The credits kick in once one or more facilities are operating with a combined production capacity of 20 million gallons a year .
SkyNRG Americas , part of the Dutch biofuels supplier SkyNRG , is one company looking to open a SAF plant in Washington state .
“ Washington is a very strong contender , and we ’ re pretty excited about this new policy ,” John Plaza , chief investment officer for SkyNRG Americas , told AWB this winter .
In May , the company announced plans to build a $ 600 to $ 800 million SAF plant in Washington that will produce about 30 million gallons of SAF . Plaza said he expects the facility will employ 80 when operational and 600 during construction . No location has been announced yet .
Jonathan Male ( left ), co-director of the Bioproducts Institute , a collaboration between PNNL and WSU-Tri Cities , holds up a jar of bio-algae and a jar of bio-crude , while his colleague Karthikeyan Ramasamy holds up bottles of bio-diesel and bio-gasoline created from waste products like treated sewage sludge .
“ Washington has been thinking about sustainable aviation for more than a decade , and we ’ re on the cusp of enabling the best , most well-thoughtout-policy that provides the most support out of any state in the country .”
— John Plaza , chief investment officer for SkyNRG Americas , which plans to build a $ 600 to $ 800 million
SAF plant in Washington to open by 2029 .
Plaza , a former commercial pilot of 20 years , said the advantage of SAF is that it ’ s a “ drop-in fuel ” that can be used right away with existing airplanes , either alone or mixed with conventional fuels . SkyNRG Americas participated in the workgroup that recommended policies to the Legislature in December .
Berkley , California-based startup Twelve plans to open a SAF plant in Moses Lake and acquired 14 acres in December . Andy Stevenson , VP of project development and partnerships , said Twelve has developed technology that turns carbon dioxide into aviation fuel and other products from sunglasses to laundry detergent to car parts . The company also testified in support of the new incentives . “ Anything that helps reduce the costs is a big benefit to us ,” Stevenson told Washington Business . He said the other main input for Twelve ’ s technology is electricity , and the company was drawn to Washington , in particular Moses Lake , because of low-cost , renewable hydropower . As the industry gets off the ground , there will be challenges : permitting , finding trained workers , and understanding how the new facilities will impact communities . But business leaders were optimistic . “ Washington has been thinking about sustainable aviation for more than a decade ,” Plaza said , “ And we ’ re on the cusp of enabling the best , most well-thought-out-policy that provides the most support out of any state in the country .”
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