Interviewer: Thank you for joining us, Kalmen. We’re pleased to have you here. Kalmen Gubaidullin brings over 15 years of experience in energy transition and decarbonization, working with oil and gas majors and in management consulting across the U.S., the Former USSR, and beyond.
This interview was sparked by recent news of California partnering with major airlines to boost sustainable aviation fuel (SAF) production to 200 million gallons by 2035. This agreement could cover around 40% of California’s intrastate travel demand and is part of the broader push to decarbonize air travel in the U.S. Can you start by explaining where sustainable fuel use stands in the U.S. today?
Kalmen Gubaidullin: Absolutely. The U.S. has made significant strides in adopting sustainable fuels, though biofuels like ethanol and biodiesel remain the most established. Ethanol, produced mainly from corn, is commonly blended into gasoline, while biodiesel, derived from sources like soybean oil and recycled fats, serves as an alternative to conventional diesel. Recent policies like the Renewable Fuel Standard have helped push these fuels forward. Beyond biofuels, there’s growing interest in options like renewable natural gas (RNG), green hydrogen, and synthetic fuels, though these face distinct challenges to broader adoption.
Interviewer: What are the main challenges limiting the widespread use of these sustainable fuels, especially green hydrogen and RNG?
Kalmen Gubaidullin: Cost is a significant factor. Green hydrogen, for instance, is currently more expensive to produce than conventional hydrogen, as it requires renewable energy to be genuinely carbon-neutral. RNG, which is sourced from landfills and agricultural waste, also faces high capture and processing costs. Additionally, our existing infrastructure is optimized for fossil fuels, making adapting it for newer sustainable fuel types costly.
Interviewer: Given these challenges, do you see a shift in the approach to sustainable fuels in the U.S.?
Kalmen Gubaidullin: Definitely. There’s a strong movement toward overcoming these barriers, spurred by both government incentives and private investments. For example, the Inflation Reduction Act of 2022 allocates funding for clean energy projects, including sustainable fuels. This support can help bring down costs, expand infrastructure, and drive innovation. There’s also exciting research into next-generation biofuels like algae and cellulosic feedstocks, which could reduce land-use conflicts and lower emissions.
Interviewer: With the rising popularity of electric vehicles (EVs), how does this impact the focus on sustainable fuels?
Kalmen Gubaidullin: Good question. The growth of EVs has indeed shifted the spotlight, especially in passenger transport, from sustainable fuels to electricity. However, sustainable fuels are now increasingly targeted for sectors where electrification is more challenging, such as aviation and shipping. The recent SAF partnership in California reflects this shift—airlines are committing to SAF to meet ambitious emission targets. This focus on aviation and other hard-to-electrify industries positions sustainable fuels to play a crucial role in decarbonization efforts.
Interviewer: It sounds like there’s great potential. What will it take for sustainable fuels to become mainstream in the U.S.?
Kalmen Gubaidullin: Mainstreaming sustainable fuels will require sustained investment in technology, infrastructure, and supportive policy frameworks. Reducing production costs and expanding fuel availability will be key. Policy measures like carbon pricing, blending mandates, and stricter emissions standards could also provide essential incentives. Additionally, expanding infrastructure—especially in capturing and processing bio-based or synthetic fuels—will make sustainable fuels more accessible at a larger scale. With these combined efforts, I’m optimistic that sustainable fuels can become fundamental to the U.S.’s energy transition.
Interviewer: Thank you for sharing these insights. It’s clear that while challenges remain, the future looks promising for sustainable fuels in the U.S.
Kalmen Gubaidullin: My pleasure! It’s an exciting area, and I believe we’re heading toward a cleaner, more sustainable future.
Published by: Josh Tatunay
