WASHINGTON, D.C. – Today, Growth Energy CEO Emily Skor thanked President Biden for signing the Inflation Reduction Act into law. This initiative includes key provisions designed to expand the use of low-carbon biofuels, including infrastructure investments and tax credits for Sustainable Aviation Fuel (SAF), carbon capture, cellulosic biofuels, and bio-based diesel.

“We applaud President Biden and Congressional leaders for advancing our nation’s investment in low-carbon biofuels for a cleaner future,” said Skor. “Biofuels are critical to meeting climate goals, and this law will help maximize our industry’s contributions to a cleaner future by expanding the volume of low-carbon biofuels available across the entire transportation sector – on the ground, in the air, and at sea. This initiative will help jump-start climate progress, while delivering more savings at the pump, greater long-term energy security, and a welcome economic boon to rural communities.“

Included in the Inflation Reduction Act are several key priorities for the biofuels industry:

  • 45Q tax credits for carbon oxide sequestration and utilization extended through 2032 with adjusted rates of $85/ton for sequestration and $60/ton for utilization.
  • Clean Fuel Production Credit starting in 2025 and expiring at the end of 2027 for the production of low-carbon fuels.
  • Five Years of Sustainable Aviation Fuel (SAF) credits: A stand-alone credit for SAF then as part of the Clean Fuel Production Credit for three years.
  • $500 million for biofuels infrastructure through the end of 2031.
  • Extension of Biomass-Based Diesel Blenders Credit and the Second-Generation Biofuels Producer Credit for two years.
  • $300 million grant program to increase domestic production and deployment of SAF and low-emission aviation technologies.

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The First District is home to 10 of MN’s 18 ethanol plants. This #NCEW22, I proudly support the production of biofuels, which provide affordable, reliable energy that meets the needs of American families & businesses, while also reducing our reliance on foreign energy sources. https://t.co/UrvwSQgYXc

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#Biofuels support American energy security, create jobs throughout rural America, & reduce greenhouse gas emissions. 🎥 WATCH: @RepMMM is working to promote renewable energy sources like IA #biofuels to create a cleaner future. https://t.co/knROLkKSHu

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