There is a ton of speculation on 45Z tax credits and how it will be implemented. We are going to be trying to keep this site updated with the latest information for you. The most important part is be cautious in signing up for any Carbon Intensity programs and know what rights you are giving up.
We would currently advise not sign up for any programs until more guidance has been issued from the government.
CLICK HERE C.I. CALCULATOR GUIDE
Click Here for a Carbon Intensity Calculator
FAQ:
What is CI: Carbon Intensity or "CI" is a long-standing metric used by the biofuel industry to quantify the emissions footprint of their fuel products. With a lower score, biofuel producers can access specialty markets and secure tax credits which incentivize the production of lower-emissions and/or "green" fuels. The score is directly related to how efficiently a product is produced [output (yield) vs inputs (energy required to produce a bushel)]
Why does it matter to Tremont: Approximately 50% of a biofuel CI score comes from the carbon/emissions footprint of the feedstock used to make that gallon of fuel. Given that Central Illinois corn producers are some of the most efficient and high-performing in the world, there is a significant advantage for local producers to score their CI and for Tremont to leverage those scores in value-add marketing conversations with local biofuel processors to improve that 50% scoring contribution.
What is going on with 45Z: The Inflation Reduction Act (IRA) clean fuel production credit (or 45Z) stands to directly incentivize biofuel producers for improving their CI scores in 2025. The IRA has been written into law and is set to go "live" on 1/1/25 but the US Treasury continues to lag on delivery of guidance regarding how to access the credit. As such, the entire biofuel industry is closely watching what the Biden administration will release related to 45Z ahead of their last-days in office (1/19/25) and what the Trump administration will do to finalize and implement the tax credit post-inauguration. The final "rule" for how much value a low-CI bushel can bring an ethanol plant cannot be definitively defined without that Treasury guidance.
Why should I get a CI score: Tremont has deployed a simple CI estimator that gives you a chance to score your operation's CI and run scoring scenarios for free in a matter of seconds. Your low-score corn may be worth a significant amount to local ethanol producers in 2025 and Tremont will be able to provide you with the tools and resources you need to maximize that value-add.