State and industry leaders gathered at the Capitol Tuesday to highlight Kentucky’s leadership in the growing alternative aviation fuel market, supporting the state’s agriculture industry, attracting new investment, and strengthening supply chains across the Commonwealth.
House Bill 545, sponsored by Speaker Pro Tempore David Meade, would establish targeted incentives to encourage the production and blending of alternative aviation fuel in Kentucky. The proposal includes a non-refundable tax credit designed to support in-state fuel production and strengthen markets for Kentucky-grown agricultural feedstocks.
“Major industries are being built around the next generation of aviation fuel, and states that move early will be the ones that capture that investment,” said Speaker Pro Tempore David Meade. “Kentucky has the agriculture, workforce, and logistics advantages to compete, and this effort helps ensure we’re positioned to be part of that growth.”
The Kentucky Chamber emphasized the importance of cross-industry collaboration in economic growth.
“Alternative aviation fuel brings together three of Kentucky’s economic pillars — agriculture, manufacturing, and transportation,” said Ashli Watts, president and CEO of the Kentucky Chamber of Commerce. “This kind of cross-industry alignment is how new markets take shape and how states build the foundation for long-term economic growth.”
Larry Krauter, CEO of the Cincinnati/Northern Kentucky International Airport (CVG), highlighted the aviation industry’s growing demand for alternative aviation fuel and Kentucky’s logistical advantages.
“Airports connect regional industries to the global economy, and CVG sits at the center of one of the country’s most important cargo and logistics networks,” Krauter said. “As demand for alternative aviation fuel continues to grow, Kentucky’s logistics infrastructure and central location create a real opportunity to connect our agriculture and manufacturing strengths to the global aviation system.”
Agriculture Commissioner Jonathan Shell said Kentucky’s agricultural sector is well-positioned to play a central role in supplying the industry.
“Kentucky agriculture is one of the Commonwealth’s most important economic engines and a key part of the nation’s food and agricultural supply chains,” Shell said. “Alternative aviation fuel creates a new way to build on that strength by connecting the crops and agricultural byproducts produced here in Kentucky to a growing domestic energy market.”
Eddie Melton, president of Kentucky Farm Bureau, emphasized the importance of expanding reliable markets for farmers.
“Kentucky agriculture succeeds when farmers have strong, reliable markets for what they produce,” Melton said. “Alternative aviation fuel creates new demand for crops and agricultural byproducts grown here in Kentucky, helping strengthen farm operations while supporting the rural communities that depend on them.”
To learn more about alternative aviation fuel, visit:
https://kyadvocacy.com/alternativeaviationfuel/.
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