Inflation Reduction Act passage “game changer” for biofuels
An ag economist says the newly signed Inflation Reduction Act is a potential “game changer” for biofuel demand.
The University of Missouri’s Ben Brown said sustainable aviation fuel tax credits opens the door to more biofuel production.
“That could be taking ethanol and refining it in a different way to make sustainable aviation fuel, it could be soybean oil that turns into that,” he said. “There are credits here, and we’re talking anywhere from like $1.50 to $1.75 based on their carbon intensity score.”
He tells Brownfield there’s been quick Congressional action to support SAFs since discussions picked up last fall…
“To now, it’s not only law but it has a pretty substantial credit that you can sell to go with it,” Brown said. “This could be the major game changer for ethanol; that pulls ethanol from, kind of, a flatlined outlook into ‘hey, can we now use ethanol to produce sustainable aviation fuel’.”
President Biden signed the legislation into law Tuesday.
Brown made his comments during Brownfield’s recent Weekly Commodity Market Update.