Ethanol Industry Reacts to SAF Guidance

Ethanol industry stakeholders reacted to the 40B sustainable aviation fuel (SAF) tax credit guidance and modified GREET model released Tuesday by the Biden Administration.

The new 40B GREET model will recognize GHG reductions from carbon capture and sequestration (CCS), renewable natural gas, and renewable power used to produce ethanol for qualifying SAF and include a “safe harbor” pilot program for corn ethanol produced with bundled climate-smart agriculture (CSA) practices.

American Coalition for Ethanol (ACE) CEO Brian Jennings says while the announcement a step in the right direction, it’s not likely to make a difference this year. “With the 2024 planting season underway and the expiration of the 40B credit on December 31, 2024, Treasury’s SAF guidance speaks more to the Administration codifying the important role CSA practices play in decarbonizing liquid fuels than the amount of ethanol-to-jet that will qualify for the 40B credit,” said Jennings. “Ultimately, we need to enable farmers and ethanol companies to recoup value from these tax credits for their investments to reduce GHG emissions.”

Learn more in this interview:
ACE CEO Brian Jennings on SAF tax credit guidance 15:40