Alternative Aviation Fuel
An Ideal Blend for Kentucky’s Economic Future
Alternative aviation fuel, or AAF, is a type of jet fuel that is certified to the same standard as Jet A, which is used to fuel commercial aircraft today. It is a drop-in fuel, and its adoption and use are critical to the aviation industry. Energy companies and agricultural feedstock and commodity producers are also vital to the AAF value chain. AAF is the ideal blend of Kentucky industries to power future flight.
Op-ed: Kentucky Farmers Can Power Aviation’s Future
For generations, Kentucky has stood at the crossroads of American agriculture and transportation, growing the nation’s food and moving it around the world. From the crops grown across our rural communities to the cargo that lifts off from our airports each day, those industries power our economy and shape our future.
Now, there is an opportunity to bring them together. If we move boldly, we can turn alternative aviation fuel into a once-in-a-generation economic development opportunity for our farmers, our communities, and our workforce.
Why AAF?
AAF offers a unique opportunity for Kentucky as a new and growing industry. As a member of the Kentucky Alternative Aviation Fuel (AAF) Coalition, the Kentucky Chamber is committed to moving Kentucky forward as the best place to grow AAF feedstocks, make and blend AAF near those feedstocks and points of use, and deploy AAF at scale for the benefit of the global aviation community and Kentucky businesses.
This is a Kentucky First Energy Opportunity
Kentucky has already proven it can build successful alternative fuel industries. Biodiesel and ethanol brought jobs, private investment, and stronger agricultural markets. A Production Tax Incentive for Alternative Aviation Fuel (AAF) simply applies that same winning model to a fast-growing aviation market.
Let’s Build on a Proven Kentucky Success Story
Kentucky used production incentives to launch biodiesel and ethanol. The same approach will lower investment risk, attract new plants and facility expansions, and secure long-term manufacturing jobs before other states do. AAF is the next logical step in our alternative fuels leadership.
Airlines Already Want This Fuel
Cargo and passenger airlines are actively seeking dependable AAF supply to lower emissions and add resilient fuel options. Many are signing long-term purchase agreements now. An incentive helps ensure this production happens in Kentucky, not elsewhere.
This is A Win for Farmers: New Markets & Stability
AAF production creates new, high-value uses for Kentucky crops and byproducts and builds on the market growth ethanol and biodiesel provided. AAF can utilize crop residues and waste materials, avoiding competition with food needs.
This strengthens long-term farm and rural economic stability.
Create Jobs, Investment, and Rural Growth
A production incentive drives private-sector investment in new construction and long-term manufacturing jobs. Kentucky has the right supply chain and logistics infrastructure to support new facilities.
AAF production keeps energy dollars circulating inside Kentucky.
Kentucky is already in the alternative fuels business—AAF simply expands that success into aviation.
About the Kentucky AAF Coalition
Advocating for supportive AAF policy in Kentucky
The Kentucky AAF Coalition remains committed to advocating for the adoption of comprehensive legislation that incentivizes the adoption and use of AAF in the Commonwealth.
Further studying the market opportunity for AAF in Kentucky
The Kentucky AAF Coalition has partnered with WSP to produce a detailed statewide feasibility study for AAF in 2025. In-depth feedstock analyses are also underway.
Raising awareness and educating stakeholders about the AAF opportunity
The Kentucky AAF Coalition is working with stakeholders in the state to share what this new industry could represent for Kentucky businesses, and it is working with other AAF industry partners to attract production to the Commonwealth.
Making the case for Kentucky
If you are interested in connecting with the Kentucky AAF Coalition or would like to speak with someone further about AAF investment or activity in Kentucky, please contact us.
Coalition Members
Kentucky Chamber of Commerce