A UPS cargo plane is seen after takeoff from the Ted Stevens Anchorage International AIrport on Oct. 24, 2024. The plane is seen from Point Woronzof along the Tony Knowles Coastal Trail. (Photo by Yereth Rosen/Alaska Beacon)
In a previous commentary, I discussed the economic opportunities a robust commuter rail system would bring to Alaska. I stressed how Alaska already has much of the needed infrastructure but that the state still needs political will to invest in the planning and the additional assets. While I don’t have any New Year’s resolutions for myself — other than maybe losing a couple of winter pounds — I have another, just as pragmatic, transportation-related item for the incoming Legislature. It concerns something Alaskans per capita consume more than any other state: aviation fuel. While Alaska’s overdependence on air travel might be inevitable for the foreseeable future, the way the state manages the production and consumption of aviation fuel can be adjusted to boost entrepreneurial and research activities.
Objectively, Alaska’s high consumption of jet fuel makes sense. The U.S. Energy Information Administration draws a correlation between the population density and the amount of energy used in transportation. It’s unsurprising that an average Alaskan living in the largest U.S. state with the lowest population density and limited road system burns more jet fuel than a New Yorker. While I could list all the cons of continued use of pure kerosene-based fuel, I want to focus on how moving toward sustainable aviation fuel could diversify the state’s economy and position Alaska as a future-oriented aviation center. The best thing? The state has the right resources to make it happen.
Alaska has a magic ingredient: algae
Virgin Atlantic, in 2008, conducted a first test flight using sustainable aviation fuel. SAFs include bio- and synthetic fuels and are categorized as “drop-in fuels,” meaning they can be safely blended with regular jet fuels, with limits between 10% and 50%, depending on their feedstocks. Biofuel feedstocks are varied and include agricultural waste, cooking oil, plant oils, municipal waste, and algae. In the early and expensive development, synthetic fuels are derived from renewable energy, water and captured carbon dioxide. The use of SAF can reduce overall CO2 lifecycle emissions compared to conventional fossil fuels, up to 80% in some cases.
Until the end of 2024, the federal government offered a tax credit of $1.25 per gallon to SAF producers whose products reduce greenhouse gas emissions by at least 50%. The U.S. departments of energy, agriculture and transportation and other federal agencies in 2023 awarded grants to 13 SAF developers, aiming to scale domestic production of sustainable fuel. Four of the awardees, all based in California, are developing SAF products by using algae to capture CO2 from air and water, extracting oil from algal biomass, and direct carbon capture from algal multiacre raceways. That’s where Alaska comes in. Having more coastline than the rest of the United States combined, Alaska has nascent yet quickly growing seaweed — or macroalgae — production in the food sector. The industry has grown from almost nothing in 2017 to nearly 900,000 pounds of seaweed in 2022. Algaculture — yes, that’s a word — is the state’s growing economy, and there’s no reason why Alaska shouldn’t take greater advantage of it in the fuel sector.
Policies in Juneau must encourage research and innovation
Alaska would benefit if it follows the lead of other states that have already passed legislation spurring the production of SAF. Among examples is Washington, where the Legislature passed a bill incentivizing the purchase and manufacture of aviation biofuels via tax incentives. The Hawaiian government adopted a program that provides matching grants to small businesses developing SAF products. Alaska can step up and enact a state-led program that will encourage research and development of SAF. The state could use its potential to grow algae, which are excellent partners in balancing ocean acidification and, compared to land-based agriculture, much more space-efficient.
The 49th State’s air traffic is bustling. Anchorage has one of the busiest cargo airports in the world and faces an increasing demand for passenger travel. The state government can leverage its position in global air transportation and ensure that planes flying in and out of the state use Alaska-made SAF. Meeting the demand of the air travel industry, quickly committing to decarbonization, requires continuous technological advancement. Alaska’s naturally given capacities, including the ability for scaled-up production of algae, make it an optimal future hub of aviation innovation. For that to become a reality, the Legislature can step up and incentivize Alaskan entrepreneurs and researchers to fuel the needs of the growing market.
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