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U.S. Department of Energy updates 45Z GREET model, biofuel groups call it ‘major win’

Biofuel groups are responding positively to the U.S. Department of Energy’s update to the 45ZCF-GREET model, released on Friday.

Emily Skor with Growth Energy says she views this as a major win for the ethanol industry. She recently told Brownfield ethanol producers were waiting on the details.

“So they have certainty about what exactly they can take credit for with the tax credit for this year.”

Skor says this is one of three major pieces needed for full 45Z implementation. The other two include USDA finalizing a farming practices calculator, currently in interagency review, and the U.S. Department of Treasury issuing final guidance explaining how producers claim the credit.

The 45Z Clean Fuel Production Tax Credit is a federal tax incentive rewarding producers for blending ethanol and other biofuels, like biodiesel, renewable diesel and Sustainable Aviation Fuel.

The One Big Beautiful Bill Act, signed into law last year, made updates to the 45Z tax credit by excluding indirect land-use change from emissions calculations, extending the credit through 2029 and limiting eligible feedstocks to North America. Those updates went into effect earlier this year.

In a statement, Geoff Cooper with the Renewable Fuels Association says the association is grateful for the updated model. They’ve been reviewing it and will be engaging with members across the supply chain to discuss the implications.

Kurt Kovarik with Clean Fuels Alliance America says the update provides certainty for biofuel producers, growth for the biofuels industry and supports new markets for U.S. farmers.