General information only, last reviewed October 25, 2026. Full notice at the end of the page. A date on this page has passed. Check the current rule at the source before you rely on it. Dates to watch
A jet cannot run on a battery anytime soon. The planes are built for liquid fuel with a lot of energy packed into a small tank, and that is hard to replace. So the cleaner-fuel push in aviation went a different way. Sustainable aviation fuel, or SAF, is jet fuel made from renewable stuff like used cooking oil and animal fat. Blended with regular jet fuel, it meets the same jet spec, so it drops straight into the same planes, the same pipelines, and the same fueling trucks. SAF is built from the same feedstocks as your renewable diesel and biodiesel, and there is only so much of that grease to go around.
What SAF actually is
SAF is a jet fuel. It burns in the same engines, gets blended with ordinary jet fuel, and has to pass the same quality spec a refinery's jet fuel passes. The difference is where the carbon in it came from. Regular jet fuel comes out of crude oil pulled from the ground. SAF comes from renewable feedstocks, the same fats and oils that turn into renewable diesel. The airline keeps the same engines. The fuel farm at the airport keeps the same tanks and pipes. Only the source of the carbon changes.
The feedstocks: it is mostly grease
The raw material for most SAF today is fats, oils, and greases. The cleanest-counting source is used cooking oil, the spent fryer grease a rendering company pumps out of restaurant bins. People in the trade call it UCO. After that comes animal fat, tallow from meat processing, and then vegetable oils like soybean oil. They are the same feedstocks that feed renewable diesel and biodiesel. There is one barrel of low-carbon grease in the country, and several fuels are now reaching into it.
How it gets made
Most SAF made today uses a route called HEFA. The letters stand for hydroprocessed esters and fatty acids, which is a mouthful, so think of it as the grease route. You take fats and oils, run them through hydrotreating, which means cooking them under pressure with hydrogen, and the process strips out the oxygen and rearranges the molecules into a clean hydrocarbon that behaves like fuel from crude. The exact same kind of process makes renewable diesel. SAF and renewable diesel come off closely related chemistry, from the same feedstocks, often the kind of plant that could pivot between making one or the other. There are other ways to make SAF, from alcohol and from waste gases, but the grease route is the one running at real volume right now.
Why the demand is climbing
Airlines have made public promises to cut their carbon, and unlike a delivery van or a power plant, a long-haul jet has no electric option on the table. SAF is one of the few moves an airline has, so it is the lever they keep pulling. Governments are pushing the same direction. The European Union and the United Kingdom now require a slice of jet fuel to be SAF, starting at about 2 percent in 2025, and that share is set to climb over the years ahead. Put a climate goal an airline cannot meet any other way next to a rule that forces a minimum blend, and you get steady, rising pull on every gallon a plant can produce. Supply has been the bottleneck. The demand signal is loud, the fuel itself is in short supply, and that gap is behind the price pressure.
The credits that make it pencil
SAF costs more to make than ordinary jet fuel, so on price alone it would not sell. Government incentives close the gap. The mechanism has shifted recently. The earlier federal support, for SAF sold in 2023 and 2024, ran as a blender's credit, money paid to whoever blended the SAF into the supply. The current support, for fuel sold from 2025 through 2029, runs as a producer's credit (Section 45Z), paid to the company that actually makes the fuel, scaled by how clean the fuel scores. Two things changed that the diesel side should note. First, the credit now rewards the maker, which steers value back up the chain toward the plant and its feedstock. Second, a July 2025 law cut the SAF credit rate to the same rate renewable diesel gets, for fuel made from 2026 on, so the two fuels now pull from the same pool of incentive money on even footing. The same family of programs that drives diesel-side renewables, the RINs under the Renewable Fuel Standard and the LCFS credits, is what makes SAF pencil too.
Why a diesel marketer should care
SAF chases the exact same low-carbon feedstocks your renewable diesel and biodiesel chase. Used cooking oil, tallow, soybean oil, the lot. When a new SAF plant fires up and starts buying grease, it is bidding against the renewable diesel makers you buy from. More buyers for a fixed amount of feedstock means a higher price for the feedstock, and that price flows down into the renewable diesel and biodiesel you carry. If a chunk of your diesel pool is a renewable blend, the cost of the blendstock can drift up as airlines compete for the same fryer grease, whatever crude and the rack are doing. Some of this is qualitative, since prices swing on weather, harvests, and policy all at once, but the direction of the pressure is clear.
Where the opportunity sits
Tight feedstock is a squeeze on one side and an opening on the other. Anyone who can put their hands on used cooking oil, animal fat, or other low-carbon oils, and aggregate it into volumes a producer wants to buy, is sitting on something the market is hungry for. A jobber with restaurant accounts, a fleet operation, or a network of stations already touches the places where waste grease piles up. Collecting it, or even just brokering the relationship to a renderer, can turn a disposal cost into a sale. The broader low-carbon fuel programs cover the same ground. See how low-carbon fuel standards work for jobbers.
What to watch from here
You do not need to make SAF or sell it to feel it. Feedstock competition is now part of what moves the price of renewable diesel and biodiesel blendstock, and a change to the SAF credit ripples into the diesel renewables that share its feedstock. The jet fuel made from yesterday's fryer oil draws on the same supply as the renewable diesel you buy.
Sources: the IRS on the SAF blender credit (Section 40B) and the clean fuel production credit (Section 45Z); Public Law 119-21, section 70521 (the 2025 change to the SAF rate); the EU's ReFuelEU Aviation regulation (Regulation 2023/2405) and the UK's SAF Order 2024; DOE on sustainable aviation fuel; RIN rules in 40 CFR part 80, subpart M; and California's LCFS regulation.