Green path forward - treasury endorses biofuels with SAF incentives

Dec 19, 2023

In an exciting development for the biofuel industry, the U.S. Department of Treasury has chosen the GREET (Greenhouse Gases, Regulated Emissions, and Energy Use in Technologies) model to determine tax credits for sustainable aviation fuel (SAF). This decision is a boon for U.S. farmers and ethanol producers, positioning them at the forefront of SAF development.

The adoption of the GREET model, a respected tool created by the U.S. Department of Energy, allows for accurate measurement of ethanol’s carbon footprint. This ensures that SAF derived from corn ethanol qualifies for significant tax incentives, a critical factor for the industry’s growth. These incentives range from $1.25 to $1.75 per gallon, based on the degree of greenhouse gas emission reduction achieved.

Industry leaders, including Harold Wolle of the National Corn Growers Association and Brian Jennings of the American Coalition for Ethanol, have expressed their support for this milestone. They acknowledge its potential to lower the aviation sector's carbon footprint and drive innovation in biofuel technology.

Moreover, the Treasury Department plans to update the GREET model by March 2024, incorporating the latest data and scientific advancements. This update will include new modeling for indirect emissions such as crop production and livestock activities, aligning with the most current environmental strategies.

The Treasury's decision reflects the administration's commitment to environmental sustainability and recognizes the biofuel industry's integral role in the nation's journey towards net-zero emissions. It also indicates an adaptable, science-based approach to environmental policy, essential in the global fight against climate change.

Video: Evolution of Beef Cattle Farming

The Clear Conversations podcast took to the road for a special episode recorded in Nashville during CattleCon, bringing listeners straight into the heart of the cattle industry. Host Tracy Sellers welcomed rancher Steve Wooten of Beatty Canyon Ranch in Colorado for a wide-ranging discussion that blended family history and sustainability, particularly as it relates to the future of beef production.

Sustainability emerged as a central theme of the conversation, a word that Wooten acknowledges can mean very different things depending on who you ask. For him, sustainability starts with the soil. Healthy soil produces healthy grass, which supports efficient cattle capable of producing year after year with minimal external inputs. It’s an approach that equally considers vegetation, animal efficiency, and long-term profitability.

That philosophy aligned naturally with Wooten’s involvement in the U.S. Roundtable for Sustainable Beef, where he served as a representative for the Colorado Cattlemen’s Association. The roundtable brings together the entire beef supply chain—from producers to retailers—along with universities, NGOs, and allied industries. Its goal is not regulation, Wooten emphasized, but collaboration, shared learning, and continuous improvement.