Former Renewable Fuels Association Chair Jeff Oestmann says ethanol producers should view the 45Z Clean Fuel Production Tax Credit as an opportunity to strengthen their businesses long after the incentive expires. Speaking on RFA's latest Ethanol Report, Oestmann said producers should focus on building a stronger operation for the future rather than simply maximizing short-term tax credit revenue. The Section 45Z credit rewards biofuel producers for lowering the carbon intensity of their fuels and is currently scheduled to expire at the end of 2029. Oestmann said plants can position themselves for long-term success by improving core business fundamentals such as yield, energy efficiency, reliability, procurement, and co-product value. Those improvements can reduce carbon intensity while creating benefits that remain after the tax credit ends. He also urged producers to carefully evaluate carbon-related investments, including securing a market for captured carbon before committing capital to carbon capture projects. "The opportunity for an ethanol plant is really to use the credits. You monetize the credits and turn that into real value and then build a plant for 2031 and use those credits to pay for it."
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