Investing in the EU’s Latest Sustainable Aviation Fuel (SAF) Mandate

Jeff Siegel

Written By Jeff Siegel

Updated May 15, 2024

It all went down in 2005…

One of the greatest corporate welfare scams in the nation’s history.

It was called the Renewable Fuel Standard (RFS), and it was a federal mandate requiring transportation fuel to contain a minimum volume of “renewable fuels,” which was and still is primarily corn-based ethanol. 

It was introduced as a part of the Energy Policy Act of 2005 and then expanded by the Energy Independence and Security Act of 2007.

Not only did the RFS prove to be a complete failure in regard to “energy security,” but it’s also been a heavy burden for taxpayers.

Some estimates show the RFS has cost taxpayers more than $100 billion since it started… And that number will continue to grow because lawmakers from the Midwest wouldn’t dare end those subsidies for the agriculture industry, which keeps those bureaucrats in power.

Make no mistake: The RFS is just one more example of how government interference in free markets always enriches the wealthy elite at the expense of taxpayers. 

That being said, when the RFS first went into effect, we knew there would be an opportunity to make a boatload of cash in corn futures, ethanol producers, and even the railroad companies that would be charged with the responsibility of moving all this ethanol.

We made a fortune!

I’ve certainly been criticized for profiting from the RFS, especially because I was always so critical of it. However, I’ll never apologize for making money… even if it means milking government incompetence for everything it’s worth.

In fact, I’m actually doing it this very moment with something called sustainable aviation fuel (SAF), which is a jet fuel made from non-petroleum feedstocks.

Governments across the globe are now actively subsidizing the production of SAF in an effort to lower greenhouse gas emissions from air travel.

Of course, the ability to lower greenhouse gas emissions from SAF is based on the type of feedstock being used. 

Similar to ethanol, if you’re growing industrial crops to produce fuel, SAF isn’t necessarily an effective way to reduce greenhouse gas emissions. In some cases, it could actually make things worse. However, that doesn't seem to dissuade lawmakers from writing checks for these SAF companies, which, of course, is an indicator that the SAF industry is taking the same road to prosperity that the ethanol industry took nearly two decades ago.

In fact, we just recently learned that the European Aviation Safety Agency (EASA) is now requiring 70% SAF usage for all airlines departing from the EU by 2050. This is huge. And here’s the rub…

Today, only about 1% of total jet fuel consumption in the EU comes from SAF.

This means it has to increase SAF consumption by 69% — a tall ask to be sure, and one that I’m not even certain will come to fruition. But you'd better believe the EU's going to try… and spend billions of dollars in the process.

That's why I’m telling you about this today.

You see, my colleague Keith Kohl has already been profiting from the early stages of SAF development with this stock, which currently has contracts in place with some of the biggest airlines in the world, including:

  • American Airlines
  • British Airways
  • Delta
  • Alaska Airlines
  • Finnair
  • Aer Lingus

It’s also already supplied SAF to the U.S. Army for its Black Hawk helicopters, the U.S. Air Force for its A-10 Thunderbolt jets, and the U.S. Navy for its F-18 Tomcats.

Truth is, there are only a handful of SAF companies currently operational, but this one’s holding some of the most lucrative contracts for SAF in the world.

We already know that the U.S. and the EU are heavily subsidizing the SAF industry, so unless you hate money, there’s no reason you shouldn’t be getting some exposure to this now. 

It’s just easy money.

To a new way of life and a new generation of wealth…

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Jeff Siegel

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Jeff is the founder and managing editor of Green Chip Stocks. For more on Jeff, go to his editor’s page.

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