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Biofuels industry applauds sustainable aviation fuel tax credit guidance

The U.S. Treasury Department will allow the Greenhouse Gases, Regulated Emissions and Energy Use in Technologies (GREET) model to be used for sustainable aviation fuel tax credits included in the Inflation Reduction Act.

“It’s really the global gold standard for determining the emissions of every part of the lifecycle of a transportation fuel, including what happens on the farm.”

Brian Jennings with the American Coalition for Ethanol says U.S. ethanol can now be used to make a more affordable sustainable aviation fuel.

“It’s potentially game-changing and allowing the GREET model in measuring carbon intensity determined whether we’d be in or out.”

Jennings says sustainable aviation fuel has the potential to be a 30-billion-gallon market long-term and he says globally, the market is even bigger. And the next steps will include reviewing more guidance about how the tax credits work.

“You’ll begin to see firms aiming to produce sustainable aviation fuel, gearing up their operations and hoping to produce fuel in the coming year and applying for the tax credit under this new provision.”

Other biofuel supporters and groups are responding to the guidance.

Growth Energy says it’s a good first step, but the industry needs more clarity before market access is certain and the path-forward for corn-based bioethanol remains unclear.

Clean Fuels Alliance America says it’s important the GREET model stays up to date and there are modifications coming to the model expected next year to use in association with the credit.  

In a statement, National Corn Growers Association President Harold Wolle said corn growers are eager to help the sustainable aviation fuel lower its carbon footprint.