Treasury Guidance Boosts Ethanol As Sustainable Aviation Fuel Source

The Treasury Department’s long-awaited guide for implementing tax credits for sustainable aviation fuel (SAF) appears to clear a path for ethanol to serve as an SAF feedstock, boosting the Biden administration’s drive to slash greenhouse gases from aircraft. Nevertheless, uncertainty continues to linger over a pending update to GHG estimation methods and biofuels producers’ ability to deploy carbon capture technology to reduce sufficient emissions to earn the credits. In its Dec. 15 guidance on the SAF credit, Treasury grants the...