The ethanol industry is keeping a close eye on the pending Treasury Department Clean Fuel Tax Credit, a key for sustainable aviation fuel after a just-finished credit quickly expires. Renewable Fuels Association’s Troy Bredenkamp said the now final 45 B tax credit for biofuel-based sustainable aviation fuel or SAF was late in coming and will soon run out.
The RFA is now focused on the next version of a SAF credit—the Clean Fuel Tax Credit.
Bredenkamp said the RFA is working on a carbon-intensity credit trading system that gives farmers extra income from selling credits to ethanol producers and removes the problem of segregating grain.
Bredenkamp said it’s a tall order for SAF to reach the administration’s goal of 36 billion gallons by 2050, but he feels the ethanol industry can make a dent and a huge contribution to the airline fleet.
