Almost all alternative fuels on the market today are made from waste fats, fats, and greases. Montana Renewables recently received a $1.44 billion loan commitment from the U.S. Department of Energy to expand one such production facility. Still, the supply of these materials remains limited.
Companies that use other technologies and inputs are scaling up. LanzaJet opened its first commercial-scale facility to produce jet fuel from ethanol in early 2024, with a production capacity of 9 million gallons per year. Synthetic fuels made from carbon dioxide could further expand airline options, but these fuels have not yet been produced on a commercial scale.
One of the key factors for future alternative jet fuels is cost. On average, SAF on the market today tends to be nearly three times more expensive than traditional jet fuel. As more companies produce more fuel, prices should come down, but new fuel could become even more expensive.