The Department of Energy added new feedstock options to its model for determining eligibility and carbon intensity scores for biofuel producers under the 45Z tax credit.
DOE updated the 45ZCF GREET model to add pathways for ethanol from corn wet mills and alternative natural gas from coal mine methane capture. This could allow a wider range of farmers and fuel producers to participate in the credit.
The model is used by clean fuel producers to calculate their eligibility for the credit based on the carbon intensity of the feedstocks and methods used in production.
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“By lifting needless restrictions on wet mills and different end uses for captured carbon, the updated user manual ensures that more farmers and biofuel producers will have the freedom and flexibility to invest in U.S. energy dominance while supporting stronger markets for American agriculture,” Growth Energy CEO Emily Skor said in a statement.
Additionally, the updates clarify that carbon used in enhanced oil recovery can count toward lowering CI scores. It also updates the GREET user manual so it’s in line with the model’s indirect land use change emission scores for soy and canola. This does not impact the model’s ILUC calculations itself.
The updates come after the House of Representatives preserved and extended the 45Z credit in its reconciliation bill. Several other tax credits included in the Inflation Reduction Act were scaled back through the package.
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