U.S. Producers Scale Sustainable Aviation Fuel Output

New production facilities are leveraging captured carbon and organic waste to meet rising demand for lower-emission jet fuel.

Updated on Oct. 21, 2026 in Air Travel

Screen-print poster illustration depicting a jet turbine, organic biomass, and carbon-capture vessel, symbolizing the rise of sustainable aviation fuel production. — U.S. aviation companies are expanding domestic production of sustainable fuel to mitigate the industry's significant carbon footprint by using renewable feedstocks. AI Illustration. Upload story photo >

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As of summer 2026, the United States is expanding domestic production of sustainable aviation fuel (SAF) to address the industry's 2.5% share of global carbon dioxide emissions. Facilities in Washington and Montana are now using captured carbon and organic feedstocks to supply fuel that is compatible with current aircraft infrastructure.

Why it matters

Aviation remains difficult to decarbonize because existing aircraft require high-energy-density liquid fuels that current airport infrastructure is built to handle. By utilizing renewable sources instead of underground oil, producers aim to reduce the industry's significant carbon footprint.

The U.S. federal government currently provides a tax credit of $1 per gallon for SAF production. Meanwhile, Montana Renewables aims to scale its output to 200 million gallons annually by the end of 2028.

The players

Twelve

This climate technology company operates the AirPlant One facility in Moses Lake, Washington, to produce fuel from carbon dioxide.

Montana Renewables

Located in a converted oil refinery in Great Falls, Montana, this company produces fuel from feedstocks like used cooking oil and beef tallow.

Alaska Airlines

This major carrier has partnered with technology firms to secure long-term supplies of sustainable fuel for its fleet.

Microsoft

This technology corporation has entered agreements to help support the development and purchase of sustainable aviation fuel.

The details

Companies like Twelve are manufacturing fuel by removing oxygen from captured carbon dioxide and adding hydrogen derived from water, while Montana Renewables processes used cooking oil, beef tallow, and camelina. These efforts align with international benchmarks, such as the United Kingdom's 2026 mandate requiring 3.6% of jet fuel to be sustainable.

2023: Montana Renewables began producing sustainable aviation fuel.
2024: Montana Renewables became the largest SAF producer in North America.
Summer 2026: Twelve's AirPlant One facility began commercial production.
End of 2028: Montana Renewables aims to reach 200 million gallons of production.

Travel Outlook

The expansion of domestic SAF production facilities follows the implementation of the U.S. federal tax credit for sustainable aviation fuel. This financial incentive is currently accelerating the transition away from underground oil as airlines seek to meet long-term sustainability targets.

While current SAF production represents a small fraction of the 20 billion gallons of fuel consumed annually by U.S. airlines, travelers may see more carriers market carbon-reduction programs tied to these supply agreements. Passengers looking to understand the environmental impact of their flights should check airline-specific sustainability reports for details on their fuel purchasing progress.

The takeaway

Sustainable aviation fuel is essential for reducing the industry's reliance on fossil fuels without requiring expensive fleet replacements. Consumers interested in their environmental footprint should monitor how major airlines integrate these fuels into their long-term operational plans.