Treasury Releases 45Z Tax Credit Guidance

Cindy Zimmerman

Now that the Clean Fuels Production Credit has been in effect for ten days, the U.S. Treasury Department has finally dropped its proposed guidance for 45Z, which will now have a 90-day comment period.

The guidance includes both a notice of intent to propose regulations on the section 45Z credit and a notice providing the annual emissions rate table for section 45Z, which refers taxpayers to the appropriate methodologies for determining the lifecycle GHG emissions of their fuel. In conjunction with today’s guidance, the Department of Energy will release the 45ZCF-GREET model for use in determining emissions rates for 45Z in the coming days.

Renewable Fuels Association President and CEO Geoff Cooper says the guidance is still incomplete. “The guidance is a potential step in the right direction, but much work remains to be done before clean fuel producers, farmers, and consumers can fully benefit from the 45Z program.”

Cooper noted that important information from the emissions rate table remains unavailable in today’s guidance, making it impossible for producers to know whether their fuel is eligible for the credit or not. While that information, along with a new 45Z GREET model, is expected to be released soon, today’s guidance leaves biofuel producers in limbo. Today’s guidance also fails to integrate climate-smart agriculture (CSA) practices that can lower the carbon intensity of renewable fuels, and it does not allow producers to determine their own unique carbon intensity values (called a “provisional emissions rate”).

According to the guidance, Treasury “intends to propose rules for incorporating the emissions benefits from climate-smart agriculture (CSA) practices.”

These options would be available to taxpayers after Treasury and the IRS propose regulations for the section 45Z credit, including rules for CSA, and the 45ZCF-GREET model is updated to enable calculation of the lifecycle greenhouse gas emissions rates for CSA crops, taking into account one or more CSA practices.

Iowa Renewable Fuels Association Executive Director Monte Shaw was blunt in his assessment of the guidance. “Today’s announcement by the Treasury is a story of too little, too late. This is not a final rule. This is not a safe harbor. It isn’t even a proposed rule. Putting out a notice of ‘intent’ ten days before you leave office is nothing but punting the rule down the road.”

aviation biofuels, Ethanol, Ethanol News, RFA, SAF

Bayer Acquires Camelina Assets to Advance Biofuels

Cindy Zimmerman

Following an announcement yesterday on investing in winter canola as a biomass-based feedstock, Bayer today announced a deal with Canada-based Smart Earth Camelina Corp. to acquire camelina germplasm, intellectual property, and materials to expand its global leadership position in biomass-based feedstock markets.

This acquisition underlines Bayer’s goal to help decarbonize the transportation sector and to deliver regenerative agriculture solutions through the investment and development of intermediate oilseed crops to meet the demand of the growing renewable diesel and sustainable aviation fuel (SAF) markets which is estimated to increase from 14 billion to 40 billion gallons by 2040. Camelina is a novel intermediate oilseed crop with a promising low-carbon intensity for renewable fuel and can be grown in both spring and winter. Bayer intends to use its expertise in oilseeds to further develop this product.

Bayer intends to make additional progress this year in establishing new renewable fuel value chains to deliver fuel with lower carbon intensity than traditional fuel sources that offer farmers profitable alternative oilseed options. The introduction of camelina will complement Bayer’s existing work with CoverCress, and the recent announcement on scaling winter canola with the goal to launch hybrid TruFlex winter canola in the US in 2027.

aviation biofuels, Bayer, feedstocks, SAF

Bayer and Neste to Develop Feedstocks for Renewable Fuels

Cindy Zimmerman

Bayer has signed a memorandum of understanding (MOU) with Neste, a leading producer of sustainable aviation fuel and renewable diesel, to jointly scale winter canola as a biomass-based feedstock for renewable products like biofuels. The companies intend to develop a winter canola ecosystem in the Southern Great Plains of the US, including product development and additional collaborations to enable Bayer to enter this market.

“Renewable fuels are playing an important role in the decarbonization of transportation and energy while global targets continue to shape biofuel markets and accelerate demand for biomass-based feedstocks going forward,” said Frank Terhorst, Head of Strategy & Sustainability for Bayer’s Crop Science Division. “We are committed to supporting farmers’ ability to deliver low-carbon feedstocks on demand, through investments in new crops like winter canola and advancements in sustainable cropping systems.”

Bayer aims to launch hybrid TruFlex winter canola in 2027. It offers many benefits to farmers as it includes Roundup Ready and pod shatter resistance technology, delivering excellent product stability and performance. Used as a new alternative rotational crop, winter canola helps sequester carbon in the soil and can improve soil health by increasing its organic matter content and water-holding capacity, leading to enhanced soil fertility and productivity.

The companies will be working together leading up to the launch to introduce winter canola as a biomass-based feedstock that delivers fuel with lower carbon intensity than traditional fuel sources. Bayer and Neste expect to finalize a definitive agreement later this year.

aviation biofuels, Bayer, canola, SAF

ACE Plans 2025 DC Fly-in

Cindy Zimmerman

The American Coalition for Ethanol (ACE) is gearing up for its 14th annual DC Fly-in and Government Affairs Summit which will be held March 27-28, 2025.

As one of the biofuels industry’s longest-running and most impactful events, the fly-in provides a unique platform for ethanol advocates to connect directly with policymakers. “We invite ethanol supporters to join us in Washington, DC, this March to meet the new Congress and administration,” said Brian Jennings, ACE CEO. “Our 2025 fly-in presents a strategic opportunity for grassroots advocates to promote the significance of a robust U.S. ethanol industry to Members of Congress, their dedicated staff and new key decision makers with EPA, USDA and the Treasury Department.”

Katie Muckenhirn, Vice President of Public Affairs, added, “The most effective fly-ins strike a balance between engaging our allies and reaching out to lawmakers who may be unfamiliar with our priorities. Personal stories about how ethanol benefits communities bring a fresh perspective that resonates beyond efforts from lobbyists and association representatives who lawmakers routinely hear from.”

For more than a decade, over 300 unique individuals from across 30 states have participated in ACE fly-ins, meeting with Members of Congress and top Administration officials. Past event priorities included pushing Congress to enact bipartisan legislation to allow nationwide and permanent E15 market access, supporting opportunities to access new markets and tax incentives based on climate-smart agricultural practices, and promoting legislation to remove barriers to higher ethanol blends. Other important topics such as the Farm Bill and ensuring the Renewable Fuel Standard is getting back on track could also receive key attention during the ACE fly-in.

The meetings will take place on Capitol Hill with accommodations and additional programming at The Royal Sonesta Washington, DC Capitol Hill. For more information about the event, please contact Katie Muckenhirn at kmuckenhirn@ethanol.org, Ashley Borchert at aborchert@ethanol.org or visit ethanol.org/events/fly-in.

Event registration and sponsorship opportunities are now available at ethanol.org/events/fly-in.

ACE, Ethanol, Ethanol News

2024 Ethanol Exports Set New Record Before Year’s End

Cindy Zimmerman

A record year for ethanol exports has already been declared, even before the official year-end data has been tabulated.

The latest data released Tuesday by the Census Bureau has U.S. ethanol exports for 2024 totaling 1.72 billion gallons just through November, already surpassing the previous annual record of 1.67 billion gallons set in 2018. With one month of data to go, exports are on pace to approach 1.9 billion gallons for the full 2024 calendar year, which would represent 12 percent of U.S. ethanol production and will also be a record.

Renewable Fuels Association President and CEO Geoff Cooper says growth in the export market was a big bright spot for the U.S. ethanol industry in 2024. “And it’s the primary reason that we are going to see record ethanol production in 2024 and very likely record overall demand,” said Cooper. “2024 was a phenomenal year for ethanol exports.”

Canada has been by far the top destination, accounting for over one-third of total shipments. Over 600 million gallons of ethanol were shipped to our North American neighbor through November, and shipments were on pace to be the largest ever to an individual destination in a single year. Other top destinations in 2024 included the United Kingdom, India, the European Union, and Colombia.

Cooper addressed the explosive growth in exports in RFA’s year-end Ethanol Report podcast, noting that the new record was achieved even as several key ethanol market, including Brazil and China, maintain punitive trade barriers against U.S. ethanol. “But as we look at 2025, we’re going to be really going after some of those those barriers in those countries. We’re going to be working with the new administration, the new folks at USTR, Commerce Department, USDA to really attack those trade barriers and try and get them removed and get those markets opened up,” said Cooper.

That would be Plan A, says Cooper. “Plan B, of course, is if we can’t convince countries like Brazil to remove their tariffs, then maybe we should be considering leveling the playing field and and putting some reciprocal treatment on products that they’re sending us..if they’re not willing to sit down and and talk about restoring free and fair trade.”

Listen to Cooper’s comments about exports from the Ethanol Report below, as well as the entire year re-cap and look ahead for 2025.

RFA CEO on record ethanol exports 3:50

Ethanol Report 12-30-24 38:30

Audio, Ethanol, Ethanol News, Exports, Renewable Fuels Association, RFA

Preview of 2025 Clean Fuels Conference

Chuck Zimmerman

One of the first events of 2025 is the annual Clean Fuels Conference, formally the National Biodiesel Conference, coming up January 20-23 in San Diego, CA with the theme: Accelerate.

“We chose Accelerate as the theme just because so many aspects of our industry are speeding up right now,” said Heather Buechter, Director of Communications for Clean Fuels Alliance America. “We’re just growing and gathering momentum at this point in our history.”

Buechter says they are very excited about the conference agenda. “Since we will be in California and the state plays such a critical role to the clean fuels industry, we’re going to kick off things with a California dreaming panel,” she said. “It’s worth noting that biodiesel and renewable diesel now make up 75% of California’s diesel pool under the low carbon fuel standard. So we’re excited that the head of the California Air Resources Board, also known as CARB, Dr. Steven Cliff has accepted our invitation to speak, so we’re excited to hear from him and also have a panel just on California and the impact that that state has on the clean fuels industry.”

Learn more about the 2025 Clean Fuels Conference on the website and hear more about it in this interview. Follow coverage of the conference on the Clean Fuels Conference Blog.
Interview with Heather Buechter, Clean Fuels

advanced biofuels, Audio, Biodiesel, Clean Fuels Alliance, Energy, Soybean

ACE Vows to Continue Fight for Year-Round E15

Cindy Zimmerman

As 2024 rides off into the sunset, the American Coalition for Ethanol vows to continue the fight for year-round, nationwide E15 into the new year.

Getting so close to victory in the year-end legislation adopted by Congress was disappointing but ACE CEO Brian Jennings says the fact that Congressional leadership initially included it in the continuing resolution (CR) to fund the government is an encouraging sign for success in 2025.

“We are encouraged by this progress and confident E15 year-round has cleared enough hurdles to be included in the first must-pass bill Congress takes up in 2025,” said Jennings. “Ensuring year-round availability of E15 remains at the top of our legislative to-do list. It will help provide meaningful savings at the pump, enhance America’s energy security, and increase demand for low-carbon, homegrown ethanol. We will work with our champions in Congress, the administration, and stakeholders across the country to ensure Congress successfully enacts E15 year-round in time for the 2025 driving season.”

ACE encourages grassroots members and supporters to remain engaged and vows to highlight the importance of E15 year-round and other priorities during the organization’s Washington, D.C. Fly-in and Government Affairs Summit March 27-28, 2025.

ACE, E15, Ethanol

Clean Fuels Celebrates Productive 2024

Cindy Zimmerman

Clean Fuels Alliance America is celebrating progress in 2024 with the U.S. on pace to surpass 5 billion gallons of biodiesel and renewable diesel consumption for the first time, thanks to a year that saw increased efforts from states to drive adoption, updates to technical standards, growth in soybean crush capacity and growing public support for clean transportation fuel.

Clean Fuels CEO Donnell Rehagen says a strong 2024 has set the industry up well for further growth in aviation, marine, rail and heavy-duty transportation use. “Consumers and corporations are demanding more clean fuel, and they are increasingly turning to biodiesel and renewable diesel to meet those demands,” Rehagen said. “Our industry has become a central force in the global effort to curb greenhouse gas emissions.”

Among the wins for the industry this year:
– New Mexico became the fourth state to implement a Clean Transportation Fuel Standard.
– Nebraska expanded its biodiesel retail program and passed incentives for the in-state production of sustainable aviation fuel.
– California grew its use of iodiesel and renewable diesel under the state’s Low Carbon Fuel Standard, now accounting for 75% of California’s diesel fuel supply.
– Iowa reached a record 486.5 million gallons of biodiesel sales in 2023, nearly triple the 2007 volume, now accounting for 58.7% of diesel sales in the state.

In addition, through the work of the Clean Fuels technical team and other industry experts, 2024 brought new market opportunities with updated fuel specifications and growing compatibility with manufacturers.

Clean fuel production uses more than a billion pounds of soybean oil per month and increasing amounts of soybean meal for feed markets. This is driving a 30% increase in crush capacity across the United States.

More than 20 new processing plants or expansions are underway that will add 650 million bushels of capacity, representing an investment in rural America of more than $6 billion. This also represents growth in feedstock diversity, as over 20% of the new U.S. crush capacity will process soft seeds like canola.

Rehagen says he expects greater growth in the year ahead. “The rail and marine sectors are poised for growth, and airlines are ready to start using more sustainable aviation fuel,” he said. “We’ve only just begun to meet the growing needs for clean fuel in the U.S. and around the world.”

Biodiesel, Clean Fuels Alliance, renewable diesel

Year End Ethanol Report

Cindy Zimmerman

2024 was a very good year for the ethanol industry, but the battle for year-round, nationwide E15 will once again continue on into the new year.

In this edition of the Ethanol Report podcast, Renewable Fuels Association President and CEO Geoff Cooper comments on some of the top ethanol stories of the year, including the continuing roller coaster ride for E15, fighting the EPA’s tailpipe emissions standards, working to get ethanol off the ground in sustainable aviation fuel, and expected record production and exports.

Ethanol Report 12-30-24 38:30

The Ethanol Report is a podcast about the latest news and information in the ethanol industry that has been sponsored by the Renewable Fuels Association since 2008.

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Audio, E15, E85, Ethanol, Ethanol News, Ethanol Report, Podcasting, Renewable Fuels Association, RFA