SAF Act
BULLISHThe SAF Act (HR6518) would reinstate and extend premium tax credits for sustainable aviation fuel through 2033, improving producer economics by $0.75/gallon over standard clean fuel credits. The bill is in early stage (referred to Ways and Means). Pure-play beneficiaries include refiners with conversion capacity like HF Sinclair (DINO) and engine suppliers like GE Aerospace (GE). No market data provided.
→ The extension of premium SAF credits through 2033 (versus 2029 for standard credits) provides 4 additional years of elevated incentives, pushing the breakeven IRR on SAF conversion projects from ~8% to ~14% at current diesel-SAF spread assumptions.