The U.S. Department of Energy said on Wednesday it has approved conditional loan guarantee commitments totaling nearly $3 billion for two sustainable aviation fuel projects. The agency's Loan Programs Office said the funding of up to $1.

Airlines are banking on sustainable aviation fuel to reduce the industry’s planet-warming pollution. But the amount of lower-carbon alternatives available to them right now represents just a few drops in an ocean of petroleum.

Sustainable aviation fuel holds tremendous promise in the fight to reduce the aviation industry’s carbon emissions, but significant obstacles remain before it can become the standard fuel source. Issues like high production costs, limited feedstock availability, and insufficient infrastructure must be addressed for SAF to reach its full potential.