Washington Reaches 20 Million Gallon SAF Capacity
Gov. Bob Ferguson says the state can now produce at least 20 million gallons of sustainable aviation fuel annually.
Updated on Nov. 9, 2026 in Electric Vehicles
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Gov. Bob Ferguson announced that Washington has reached the capacity to produce at least 20 million gallons of sustainable aviation fuel each year. The Department of Ecology confirmed that Phillips 66's Ferndale refinery alone has enough capacity to meet the threshold.
Why it matters
The benchmark measures production capacity, not actual output, so the state's fuel supply will depend on what facilities actually produce. Washington is positioning itself against neighboring states with competing sustainable aviation fuel incentives.
Washington's per-gallon tax credit starts at $1 and rises to as much as $2 for fuels with greater emissions reductions, with qualifying fuel requiring emissions at least 50% below conventional jet fuel. Twelve's Moses Lake facility is designed to produce up to 50,000 gallons per year.
The players
Bob Ferguson
Bob Ferguson is the Governor of Washington state, who announced the sustainable aviation fuel capacity milestone.
Phillips 66
Phillips 66 is a major American energy company whose Ferndale refinery in Washington has enough capacity to meet the state's sustainable aviation fuel threshold.
Twelve
Twelve is a company that produces sustainable aviation fuel from captured carbon dioxide and water at its AirPlant One facility in Moses Lake.
SkyNRG
SkyNRG is a sustainable aviation fuel company building a facility in Walla Walla, Washington, with commercial operations planned for 2030.
The details
The per-gallon tax credit takes effect January 1 and requires qualifying fuel to reduce emissions by at least 50% compared with conventional jet fuel. Sustainable aviation fuel can be made from used cooking oil, grease and fats, plants and agricultural waste, and captured carbon; Twelve began commercial production this summer from captured carbon dioxide and water.
Timeline
Last year: Twelve opened its AirPlant One facility in Moses Lake.
This summer: Twelve began commercial sustainable aviation fuel production.
January 1: Washington's sustainable aviation fuel tax incentives take effect.
2030: SkyNRG plans to start commercial operations in Walla Walla.
Roadmap
Washington is the only state offering both a sustainable aviation fuel tax credit and a clean fuel standard, setting it apart from competitors such as Illinois, Minnesota, and Nebraska that are also courting the industry. The capacity milestone signals the state's bid to become a regional hub for low-carbon aviation fuel production.
The state's per-gallon tax credit taking effect January 1 could lower costs for airlines that use qualifying fuel. The credit amount depends on how much emissions are reduced, so fuel producers are incentivized to cut emissions further.
The takeaway
Washington's sustainable aviation fuel incentives reward deeper emissions cuts, so producers that lower their carbon footprint further stand to gain the most. Readers tracking the state's aviation sector should watch whether announced capacity turns into actual output.
What happens next
SkyNRG plans to start commercial operations at its Walla Walla facility in 2030, and AirPlant Two is in development.
Further reading
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Source note: This article includes information reported by GeekWire.
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Should Washington use tax credits to attract cleaner jet fuel production?
