Gevo Statement on Treasury Guidance for SAF Tax Credit
15 Dezember 2023 - 4:19PM
Gevo, Inc. (Nasdaq: GEVO) issued the following statement regarding
the release of the U.S. Department of Treasury’s guidance on the
40B sustainable aviation fuel (SAF) tax credit.
“Gevo greatly appreciates the Biden
Administration’s intent to use the Argonne GREET method and model
for sustainable aviation fuel (SAF). Today’s guidance is a
much-needed step forward for SAF investment and innovation.
Designating GREET for the 40B credit sets an accurate,
science-based precedent for transparent carbon accounting across
the SAF supply chain, from farm fields to the end use of the fuel.
The details and certainty matter. Therefore, we look forward to
reviewing the complete GREET update upon release to ensure it
maintains the data-driven integrity, especially on indirect
emissions, necessary to support SAF investment, properly value
agriculture’s contributions and cut aviation emissions.
We also thank the Administration for its advocacy for
climate-smart agriculture and the tools and policies that recognize
and account for U.S. farmers’ stewardship of the land and
contribution to cleaner flight,” stated Dr. Patrick Gruber, CEO of
Gevo.
SAF with greenhouse gas emissions that are least 50% lower than
conventional aviation fuel will qualify for tax credits created by
the Inflation Reduction Act (IRA). The current Argonne National
Laboratory Greenhouse Gases, Regulated Emissions and Energy use in
Technologies (GREET) lifecycle analysis method and model, with its
Carbon Calculator for Land Use Change from Biofuels Production
(CCLUB) and its Feedstock Carbon Intensity Calculator (FD-CIC)
tools, enables more precise measurement of SAF carbon intensity,
accurately counting carbon reduction benefits of agricultural
feedstocks at the field level.
The Department of Treasury is expected to release a final GREET
model that will be used for the tax credit no later than March 1,
2024. We believe science-based methodologies must account for
emissions reductions of feedstock production, encompassing
climate-smart agriculture, to acknowledge and incentivize carbon
reduction efforts across the value chain. A growing market for SAF
made from low-carbon feedstocks is expected to open up new markets
for American farmers to sell their products.
For more information on the Treasury Department’s guidance,
visit https://home.treasury.gov/news/press-releases/jy1998, and to
learn more about Gevo’s focus on carbon accounting, visit
www.gevo.com/ira.
About Gevo
Gevo’s mission is to transform renewable energy and carbon into
energy-dense liquid hydrocarbons. These liquid hydrocarbons can be
used for drop-in transportation fuels such as gasoline, jet fuel
and diesel fuel, that when burned have potential to yield net-zero
greenhouse gas emissions when measured across the full life cycle
of the products. Gevo uses low-carbon renewable resource-based
carbohydrates as raw materials, and is in an advanced state of
developing renewable electricity and renewable natural gas for use
in production processes, resulting in low-carbon fuels with
substantially reduced carbon intensity (the level of greenhouse gas
emissions compared to standard petroleum fossil-based fuels across
their life cycle). Gevo’s products perform as well or better than
traditional fossil-based fuels in infrastructure and engines, but
with substantially reduced greenhouse gas emissions. In addition to
addressing the problems of fuels, Gevo’s technology also enables
certain plastics, such as polyester, to be made with more
sustainable ingredients. Gevo’s ability to penetrate the growing
low-carbon fuels market depends on the price of oil and the value
of abating carbon emissions that would otherwise increase
greenhouse gas emissions. Gevo believes that its proven, patented
technology enabling the use of a variety of low-carbon sustainable
feedstocks to produce price-competitive low-carbon products such as
gasoline components, jet fuel and diesel fuel yields the potential
to generate project and corporate returns that justify the
build-out of a multi-billion-dollar business.
Gevo believes that the Argonne National Laboratory GREET model
is the best available standard of scientific-based measurement for
life cycle inventory or LCI.
Media Contact Heather L. Manuel +1
303-883-1114 PR@gevo.com
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