10:20 AM EDT, 05/30/2024 (MT Newswires) -- President Joe Biden's administration's pilot program for sustainable aviation fuel credit will apply to a fuel mixture with little to no ethanol, Reuters reported Thursday, citing people familiar with the matter.

The standard could impact both the biofuel industry and President Biden's goal of producing 30 billion gallons of sustainable aviation fuel by 2030, the report said.

The program, finalized on April 30, requires corn-based ethanol producers to verify that their corn comes from farms using specific climate-friendly practices, according to the report. Citing officials at five farm and biofuel trade groups, Reuters said that few, if any, ethanol makers could meet this standard.

"I see this (pilot) as a marker, a signal and think it was a good first step," the report cited Gevo ( GEVO ) Chief Executive Officer Patrick Gruber as saying.

The US Department of Agriculture did not specify the amount of ethanol that would qualify for the credit, but a spokesperson told Reuters that the rule still represents a milestone as it recognizes the potential of farmers to combat climate change and encourages the adoption of climate-smart farming practices.

The agriculture department did not immediately respond to MT Newswires' request for comment.

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