Progressive Farmer’s Todd Neeley reported Tuesday afternoon that “the Biden administration is set to finalize guidance on the 45Z Clean Fuel Production tax credit before President Joe Biden leaves office come Jan. 20, 2025, a spokesperson for the U.S. Treasury Department told DTN on Tuesday.” Neeley noted on the social media platform X that “once […]
Biofuels
Industry Sees Brazil as Global Hub for Clean Jet Fuel
Bloomberg’s Dayanne Sousa and Clarice Couto reported Thursday that “a global push to decarbonize air travel has groups from Big Oil to sovereign wealth funds betting on Brazil to become a top global center for green jet fuel.” “Brazil is becoming a magnet for investment as countries race to grab a share of what promises […]
Lack of 45Z Guidance Could Cause Biofuel Production Shutdowns
Bloomberg’s Tarso Veloso and Kim Chipman reported Monday that “agriculture giants including Cargill Inc. and Bunge Global SA are slowing their buying of soybeans due to uncertainty over US biofuels policy.” “The lack of guidance for a new clean-fuel tax credit is causing biofuels producers to put off some purchases of soyoil for early next […]
E15 Gasoline Finally Coming to California?
Agri-Pulse’s Brad Hooker reported at the end of this past week that “Gov. Gavin Newsom on Friday directed the California Air Resources Board to accelerate its regulatory review of the E15 blend of gasoline. Newsom said the higher ethanol mix would reduce gas prices while supporting the state’s stringent regulations on tailpipe emissions.” “The governor […]
Lawmakers Propose 10 Year Extension for Biofuels Tax Credit
FERN’s Ag Insider reported Wednesday that “the 45Z tax credit, intended to encourage the development of sustainable aviation fuel and other low-carbon fuels, would be available until 2034 and limited to domestic feedstocks under companion bills filed in the House and Senate on Tuesday.” “Farm groups said the legislation would allow time for domestic production […]
Clean Fuels Tax Credit to Be Finalized By January, Ag Secretary Says
Reuters’ Leah Douglas reported Tuesday that “U.S. Agriculture Secretary Tom Vilsack said on Tuesday he is confident that a clean fuels tax credit program set to take effect in 2025 will be finalized by end of the Biden administration in January.” “The program would provide credits for the production of lower-emission transportation fuels, including sustainable […]
California Proposes Credits Cap for Soy-Based Renewable Diesel
Agri-Pulse’s Philip Brasher reported Tuesday that “the California Air Resources Board is proposing to cap the amount of renewable diesel made from soybean or canola oil that would qualify for the state’s low carbon fuel standard.” “Proposed revisions for amendments to CARB rules for the California LCFS also would require feedstocks such as soybeans to […]
US Renewable Diesel Imports Up 29% This Year
FERN’s Ag Insider reported Monday that “the United States imported near-record volumes of renewable diesel fuel in each of the first five months of this year, averaging 30,000 barrels a day, said the Energy Information Administration (EIA). The imports, which were 29% higher than in the same period in 2023, came from one producer, Neste, […]
EPA Investigating Used Cooking Oil Import Authenticity
Reuters’ Leah Douglas reported Wednesday that “the U.S. Environmental Protection Agency has launched investigations into the supply chains of at least two renewable fuel producers amid industry concerns that some may be using fraudulent feedstocks for biodiesel to secure lucrative government subsidies.” “EPA spokesperson Jeffrey Landis told Reuters that the agency has launched audits over […]
Domestic SAF Production Capacity Could Increase by 1400% in 2024
Reuters reported Wednesday that “production capacity of sustainable aviation fuel in the United States could jump by 1400% in 2024 if all announced capacity additions come on line, the U.S. Energy Information Administration said on Wednesday.” “The EIA anticipates domestic production of (other) biofuels will increase by about 50% in 2024, led by rising SAF […]
Shell Pauses Biofuels Project Amid Tough Market Conditions
Market Watch’s Louis Goss reported that “Shell on Tuesday said it had temporarily halted construction of a major biofuels production facility in the Netherlands, in a bid to ensure it is able to produce competitively in the face of an anticipated flood of sustainable fuels into the market from the U.S.” “The London-headquartered company first […]
Audit Finds Potential Fraud in Biofuels Tax Credit Program
Progressive Farmer’s Todd Neeley reported Thursday that “a new audit of biofuel tax credits called for the IRS to use more of its enforcement tools after $30.3 million in credits were improperly granted in 2022, according to an April 2024 report from the Treasury Inspector General for Tax Administration.” “The IG said in its report […]
Biden Admin Releases SAF Tax Credit Rules for Biofuels
Reuters reported Tuesday evening that “President Joe Biden’s administration on Tuesday released guidance on its sustainable aviation fuel (SAF) subsidy program that allows corn-based ethanol to qualify for the program if it is sourced from farms using climate-friendly growing techniques.” “SAF can be made from corn, soy or other agricultural products,” Reuters reported. “But to […]
Ethanol Climate Model Expected Next Week
Reuters reported Thursday that “the Biden administration is expected to release a climate model for its sustainable aviation fuel (SAF) subsidy program on Tuesday, two sources familiar with the matter said. The rule will dictate how ethanol producers can use climate-smart agriculture to qualify for tax credits in the production of SAF. The ethanol industry […]
Ag Disappointed in Tailpipe Emissions Rule
Progressive Farmer’s Todd Neeley reported Wednesday that “the Biden administration finalized national pollution standards for vehicles through 2032, leaving next to no room for ethanol and other biofuels as a tool to cut emissions.” “While the new standards give automakers some flexibility in how they reduce emissions, the standards do little to use ethanol and other […]
Year-Round E15 Sales to be Approved for Midwest States in 2025
Reuters’ Jarrett Renshaw and Stephanie Kelly reported Tuesday that “the White House will approve a request from a group of Midwest governors to allow year-round sales of gasoline with higher blends of ethanol (in their states), but will push the start date into next year, two sources familiar with discussions said.” “The decision will likely […]
Biden Admin to Back Tougher Ethanol Climate Model
Reuters reported Friday that “President Joe Biden’s administration is poised to announce an adjustment to its scientific modeling for ethanol that will show the corn-based fuel to be less effective at reducing greenhouse gas emissions than previously estimated, three sources briefed on the plans told Reuters.” “The adjustment, previously unreported, will make it more difficult […]
Ethanol-to-Jet Fuel Plant Opens in US
Bloomberg’s Kim Chipman reported Thursday that “the world’s first plant using ethanol to make lower-polluting jet fuel opened in the US, a development that Iowa corn growers and biofuel producers say is a wake-up call to move faster to decarbonize.” The $200 million facility opened by LanzaJet Inc. is located in central, rural Georgia, according […]
U.S. Supreme Court Rejects E15 Case
Reuters writer Stephanie Kelly reported this week that, “The U.S. Supreme Court on Monday turned away an industry group’s bid to revive a decision made by the Environmental Protection Agency under former President Donald Trump to allow expanded sales of gasoline that has a higher ethanol blend, called E15.”
Decrease in Energy Demand Due to COVID-19 “Crushes Ethanol Market”
Wall Street Journal writer Kirk Maltais reported this week that, “Plummeting energy demand during the coronavirus pandemic has decimated the ethanol industry. The timing for U.S. farmers couldn’t be worse.”