By Laura Sanicola
Could 28 (Reuters) – U.S. billionaire Carl Icahn’s CVR Power Inc CVI.N is exploring whether or not it might produce sustainable aviation gas at its refineries, based on three sources acquainted with the matter.
Renewable fuels account for only a fraction of the gas for highway transportation, however refiners are attempting to supply several types of feedstock to cut back their greenhouse fuel emissions. Refiners, together with Valero VLO.N and Phillips 66 PSX.N, are exploring methods to supply greener aviation gas from feedstocks reminiscent of grease, animal fat and plant oils, to decarbonize and meet rising demand.
CVR, a service provider refiner, has already introduced plans to supply renewable fuels at its Wynnewood, Oklahoma, refinery within the third quarter of this yr and mentioned it’s exploring choices to supply renewable diesel at its Coffeyville, Kansas refinery.
CVR didn’t reply to a request for remark.
Some sustainable aviation gas is created within the course of of manufacturing renewable diesel, however refiners would want to reconfigure their models to supply it at greater yields.
Airline transport is much less seemingly than passenger automobiles or different autos to be electrified in coming years, based on the Worldwide Power Company, which mentioned in a latest report that the sector must rely upon lower-emission fuels.
On Thursday, Icahn instructed Bloomberg Information that he believes renewable fuels are right here to remain, and helps subsidies as a part of an infrastructure invoice.
Sustainable aviation gas prices three or 4 instances greater than conventional jet gas, making it uneconomical with out authorities help, based on advocates of the gas.
U.S. lawmakers launched a invoice final week that might create a tax incentive of as much as $2 for each gallon produced of sustainable aviation gas. That value would make it one of the costly subsidies for clear gas.
(Reporting by Laura Sanicola Modifying by Marguerita Choy)
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