Sustainable Aviation Fuel

Sustainable aviation fuel (SAF) is a critical component of the aviation industry’s path to decarbonization.

This fast-growing space is highly complex, involving long-term development of fuel technologies (including biofuels and power-to-liquids or eSAF), development and financing of production facilities, transportation infrastructure, and commercial agreements for offtake. In addition, a growing complexity of incentives and subsidies interplays with national and international regulatory frameworks, presenting numerous legal challenges.

Ranked Bank 1 in Energy Transition by Chambers USA, 2024

Named “Energy & Projects Law Firm of the Year” by Chambers USA, 2023

Vinson & Elkins’ multidisciplinary team of attorneys are leaders in the legal issues related to sustainable aviation fuel. Our team is familiar with the wide range of opportunities and legal intricacies that companies encounter when seeking to strengthen or expand their business in the SAF sector. Vinson & Elkins advises numerous SAF market participants — producers, developers, investors, offtakers, distributors, and more. We provide comprehensive service in:

SAF Legal Capabilities

Project Structuring and Development

Agreements and market terms for SAF project development (including EPC and O&M contracts)
Ranked Band 1 by Chambers USA in Projects: Power & Renewables (2019–2024) and Projects: Oil & Gas (2014–2024)

Project Finance

All elements of project finance for any SAF project on both lender and creditor side (sponsors, developers, and lenders)

Tax Credits, Tax Equity and Structuring

Advice and advocacy for tax credits under the Inflation Reduction Act
Tax structuring to ensure tax efficiency for SAF project sponsors
Ranked by Chambers USA in Projects: Renewables & Alternative Energy in 2024, recognizing our trail-blazing efforts with clean energy tax equity financings

Environmental, Regulatory and Sustainability

Advising on environmental attributes and regimes under the LCFS, ReFuelEU, RFS, CORSIA and the UK SAF Mandate
Advising on “greenwashing” claims risks and GHG emissions reporting obligations under federal, state (including California GHG emissions and voluntary carbon offset reporting obligations) and international reporting regimes and frameworks
Ranked nationwide by Chambers USA in Environment (2013–2024)
Ranked Band 1 by Chambers USA in Energy: Oil & Gas (Regulatory & Litigation) (2010-2024)

Mergers & Acquisitions and Joint Ventures

Possess one of the strongest energy infrastructure joint venture resumes in the U.S., with experience on behalf of strategic investors, private equity funds and portfolio companies, preferred equity providers, infrastructure funds, and other investors
Advice on complex co-ownership issues, including decision-making, exit rights and limitations, distribution waterfalls, project expansions, and partnership tax matters
Ranked Band 1 in Corporate/M&A: The Elite (2021-2024)

Energy

Named among “Energy Groups of the Year” by Law360 in 2023
Ranked Band 1 in Energy Transition (2023-2024), Energy: Oil & Gas (Transactional) (2013–2024) and named “Energy & Projects Law Firm of the Year” in 2024, both by Chambers USA

Vinson & Elkins has built a decades-long reputation for excellence in both aviation and renewable energy, and our forward-thinking counsel on SAF-related matters has earned our attorneys the trust of clients across the world.

Experience Highlights

Southwest Airlines in a sustainable aviation fuel (SAF) supply agreement with Valero Marketing and Supply Company, a subsidiary of Valero Energy Corporation, to bring SAF to Chicago Midway International Airport in the state’s largest announced SAF supply agreement
Southwest Airlines in its Series A investment in SAFFiRE Renewables, a company that facilitates development activities for the production of renewable ethanol that can ultimately be upgraded into sustainable aviation fuel
Southwest Airlines Co. in its $30 million investment in LanzaJet, Inc., a sustainable aviation fuel technology provider and producer with a patented ethanol-to-SAF technology
LanzaJet in relation to the development of a sustainable aviation fuel project in the UK
Infinium in the development of a power-to-liquids eFuels facility in Texas that will convert waste carbon dioxide and green hydrogen into SAF and other low carbon fuels, and in its $75 million project equity investment commitment from Breakthrough Energy Catalyst
World Energy in all development, financing and other arrangements for $2 billion SAF production and distribution hub in Paramount, CA with Air Products (NYSE: APD)
Counseling refiner on acquisition of environmental insurance policy for legacy site conditions in connection with proposed sale of refinery complex
Southwest Airlines in the negotiation of allocation of environmental attributes and emission reductions related to sustainable aviation fuel
Represented a major airline in connection with its procurement of low-carbon fuel and allocation of associated environmental attributes and marketing rights
Represented a major international bank in its financial support of eFuels SAF offtake arrangement with major airline, which includes the bank receiving Scope 3 GHG emissions reductions attributes and resulting sustainability claims
Represented an investment management company in potential environmental liabilities arising from loan to convert a petroleum refinery to a sustainable aviation fuel refinery