Mike Pearson takes a look at a decision made Friday by the U.S. Treasury Department.

The aviation industry in both the cargo and passenger service are massive users of jet fuel. With aviation fuel consuming 2-3 percent of oil products globally, which breaks down to 6 million gallons every day.

Airlines have been in the environmental hot seat due to the fuel use so they have pledged to shift plans from fossil fuels to sustainable aviation fuel or SAF.

SAF is chemically the same as fossil fuels but made from corn ethanol, vegetable oil or sustainable produced starches.

SAF is expensive though and does not makes sense to use prior to a decision by the U.S. Treasury Department.

The decision has opened the door to SAF producers for increased incentives.

Tax credits under the renewable fuels act will become available and an update to the computer system modeling system AGO National Labs will be also be made to show the benefits of using sustainable biofuels.

SAF produced fuel will be eligible for a $1.23 tax credit.

The hope is that the tax credits will make more pathways for SAF to come onto the marketplace.

Farm Progress America is a daily look at key issues in agriculture. It is produced and presented by Mike Pearson, farm broadcaster and host of This Week in Agribusiness.