A view from above: Chicago, Illinois. Image courtesy of Photos by Rob via Shutterstock
Illinois is undoubtedly the premier location for companies in the transportation, distribution, and logistics (TDL) industry: We are the only state in the U.S. with all six Class 1 railroads (that meet in not one but two locations); has the third-largest interstate highway system with seven major interstates; has river access from Lake Michigan to anywhere in the world; and has some of the busiest cargo airports in the U.S. — up nearly 18% from June 2023 to June 2024 at O’Hare International Airport.
Not only is Illinois strong in its infrastructure, our state also is a leader in sustainability (the first in the Midwest to commit to 100% renewable energy by 2050). Our efforts to optimize transportation channels and improve our carbon footprint might seem to juxtapose, but Illinois’ focus on TDL and clean energy are complementary with the development of progressive technologies like sustainable aviation fuel (SAF).
The Future of Fuel Starts in Illinois
SAF is a biofuel made from non-petroleum feedstocks like biomass, wastes, and residues, and is increasingly recognized as a critical component in reducing greenhouse gas emissions within the aviation industry. Compared to traditional jet fuel (with which SAF can be blended, as they possess similar properties), it can reduce carbon emissions by up to 80% — proving itself a critical component of Illinois’ trajectory toward 100% clean energy.
Illinois is a top producer of feedstock for developing SAF, further driving progress in the industry. Of every U.S. state, Illinois:
- is the #1 soy producer
- is the #2 corn producer
- is the #3 ethanol producer
Not only does Illinois prioritize innovation in this field, but our state boasts the workforce, infrastructure, and supportive business policies to yield results — expanding SAF production, enhancing SAF supply chains, and increasing SAF accessibility.
- Illinois is home to 20,500 TDL companies, employing more than 331,000 people and contributing nearly $39B in economic output.
- More than 82,000 students complete programs applicable to work in TDL in Illinois each year, and our state is home to the 5th largest TDL talent pipeline in the nation.
- Illinois’ community colleges alone graduate more than 2,700 people each year with certificates specific to career opportunities in TDL.
Incentives for Companies in the SAF Space
In March of last year, Illinois held its inaugural two-day SAF Conference, in which Illinois Governor JB Pritzker laid out his vision for the burgeoning industry: “As a leader in biomanufacturing and aviation, Illinois is well-suited to lead the charge on sustainable aviation fuel adoption and manufacturing. The shift to SAF will no doubt play an important role in Illinois’ long-term climate goals, all while promoting innovation and creating jobs for our state.”
Transportation and distribution companies (like Illinois-based United Airlines, LanzaJet, Marquis Energy, and more) can benefit from Illinois’ prioritization of SAF with an ever-growing list of tax-based incentives and supportive programs:
- Illinois was the first state in the nation to implement a SAF tax incentive, providing a $1.50/gallon tax credit for SAF sold to or used by an air carrier.
- The Climate and Equitable Jobs Act (CEJA) includes provisions to phase out carbon emissions from the energy and transportation sectors; it also oversees the phase-out of fossil fuel-fired electrical generation units.
- The Reimagining Energy and Vehicles (REV) Illinois Program bolsters Illinois manufacturing in the clean jobs economy, created to attract companies all along the supply chain in the electric vehicle and renewables sectors.
- The state’s Rebuild Illinois capital program allocates $33.2B directly to transportation infrastructure.
The Illinois Manufacturers’ Association and partners (including Intersect Illinois!) are again hosting this year’s SAF conference: Illinois Future of Fuels: Sustainable Aviation Fuel and Beyond Conference, from Wednesday, May 12 to Thursday, May 13. Stay up to date here.
Wins From Around the Web
SAF Innovation in Illinois
Gov. Pritzker Announces New $820M Sustainable Aviation Fuel Investment in Southwest Illinois: Governor JB Pritzker, Avina Clean Hydrogen, and the Illinois Department of Commerce and Economic Opportunity (DCEO) announced the selection of Southwest Illinois as the location for Avina Clean Hydrogen’s $820 million investment for a sustainable aviation fuel (SAF) project, helping meet Illinois’ clean energy goals and supporting the state’s growing clean energy economy.
Of the news, Intersect Illinois President & CEO Christy George shared, “Illinois is at the forefront of clean energy innovation, and this investment further solidifies our leadership position. By supporting the development of sustainable aviation fuel, we’re not only reducing carbon emissions but also driving technological advancements and creating a more sustainable future for our state and the nation.” Read the press release.
The project will create 150 new jobs and add 1000 construction jobs. Read more here.
Biden-Harris administration announces nearly $300M in awards for sustainable aviation fuels and technologies as part of Investing in America Agenda: The Federal Aviation Administration announced nearly $300M for SAF projects across the country. Illinois-based projects at the University of Illinois Urbana-Champaign, Marquis Energy, and Buckeye Terminals were selected for grants, and Chicago-based LanzaJet’s Georgia SAF plant was also selected. Read the article.
Crysalis Biosciences Inc. invests $239.5M for sustainable aviation fuel facility in Sauget: Gov. Pritzker, DCEO, and Crysalis Biosciences Inc. announced that Crysalis is investing $239.5M to develop Illinois’ first low-carbon sustainable aviation fuel plant in Sauget, creating at least 35 jobs. The company will receive REV incentives, the first agreement secured for a SAF manufacturing project. Read the press release.
Renewable energy plant in Saline County turns agricultural emissions into sustainable fuel: Compressed Energy Systems opened the Saline Biogas Digesters renewable natural gas facility in Saline County. The first of its kind in Southern Illinois, the facility intends to produce sustainable fuel from nearby farms. Read the article.
United Airlines, feds forge climate deal to track greenhouse gas data in the sky: The U.S. government and United Airlines will use a commercial aircraft to monitor greenhouse gases throughout the atmosphere, a first-of-its-kind collaboration that promises to vastly expand what scientists know about how planet-warming pollution behaves in the sky. Read the article.
Northeast Cargo campus completed at Chicago O’Hare International Airport: The third phase of the project (of which parts one and two were completed in 2016 and 2017, respectively), cost $43 million and marked the first such facility built by a Black-owned construction company. Read the article.
Why the Midwest is poised to be a leader in decarbonizing aviation: ChicagoInno highlights Illinois’ strong position in sustainable aviation fuel, a topic of a Chicago Climate Tech Week panel earlier this fall. Read the article.
Flying High in Illinois
United Airlines approaches 20-year high at O’Hare: United Airlines is flying more capacity from O’Hare than at any time in the past 20 years, demonstrating O’Hare’s growth potential. Following United’s plans to add capacity, American Airlines has jump-started its growth at O’Hare and has grown faster in Chicago than any other airline in the last year. Read the article.
United is betting on alt vacation spots: United will offer flights to seven cities next summer to which no other U.S. airline will offer service. Read the article.
The last two months have been very good for Peoria’s airport. See the record numbers: General Wayne A. Downing Peoria International Airport had two record-setting months in 2024, with its busiest September in history. The airport is looking to expand to more cities in western and southwestern markets. Read the article.
American Airlines adds Madrid service as it boosts flying from O’Hare: American Airlines will add daily flights to Madrid from O’Hare this summer, making it the airline’s largest-ever transatlantic schedule. Having two major airline hubs at O’Hare — American and United — distinguishes the airport and makes it especially attractive for business. Read the article.
United Airlines preps for busiest winter season in its history with expanded flight schedule: United Airlines is gearing up for its biggest winter season in history. It’s adding flights at more than 140 airports across the country and expanding its flight schedule to Africa, southern Europe, Latin America, and U.S. ski resorts. Read the article.
What’s Next? Scale Your SAF in Illinois
Join top companies driving SAF innovation in Illinois. Shovel-ready and offering 1,000 acres of expanse, the Dual Rail Megasite in Rochelle, Illinois, is perfect for TDL companies ready to scale.
Check out the megasite here, view all our Vetted Sites here, and get in touch with our team to discover how Illinois can benefit your TDL business today.
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