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President & Editor Tom Bryan tbryan@bbiinternational.com
Ringneck Energy Walter Wendland Commonwealth Agri-Energy Mick Henderson Western Plains Energy Derek Peine Front Range Energy Dan Sanders Jr.
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Upcoming Events
2026 International Fuel Ethanol Workshop & Expo
June 2-4, 2026
St. Louis, MO (866) 746-8385 | www.fuelethanolworkshop.com
Now in its 42nd year, the FEW provides the ethanol industry with cutting-edge content and unparalleled networking opportunities in a dynamic business-to-business environment. As the largest, longest running ethanol conference in the world, the FEW is renowned for its superb programming—powered by Ethanol Producer Magazine —that maintains a strong focus on commercialscale ethanol production, new technology, and near-term research and development. The event draws more than 2,300 people from over 31 countries and from nearly every ethanol plant in the United States and Canada.
2026 Sustainable Fuels Summit June 2-4, 2026
St. Louis, MO (866) 746-8385 | www.sustainablefuelssummit.com
The Sustainable Fuels Summit: SAF, Renewable Diesel, and Biodiesel is a premier forum designed for producers of biodiesel, renewable diesel, and sustainable aviation fuel (SAF) to learn about cutting-edge process technologies, innovative techniques, and equipment to optimize existing production. Attendees will discover efficiencies that save money while increasing throughput and fuel quality. Produced by Biodiesel Magazine and SAF Magazine, this world-class event features premium content from technology providers, equipment vendors, consultants, engineers, and producers to advance discussions and foster an environment of collaboration and networking. Through engaging presentations, fruitful discussions, and compelling exhibitions, the summit aims to push the biomass-based diesel sector beyond its current limitations. Co-located with the International Fuel Ethanol Workshop & Expo, the Sustainable Fuels Summit conveniently harnesses the full potential of the integrated biofuels industries while providing a laser-like focus on processing methods that deliver tangible advantages to producers. Registration is free of charge for all employees of current biodiesel, renewable diesel, and SAF production facilities, from operators and maintenance personnel to board members and executives.
2026 Carbon Capture & Storage Summit
June 2-4, 2026
St. Louis, MO (866) 746-8385 | www.carboncapturestoragesummit.com
Customer Service Please call 1-866-746-8385 or email service@bbiinternational.com. Subscriptions Subscriptions to Ethanol Producer Magazine are free of charge with the exception of a shipping and handling United States. To subscribe, visit www.EthanolProducer.com/Subscribe, send an email to subscriptions@bbiinternational.com or call 866-746-8385. Back Issues, Reprints and Permissions Select back issues are available for $3.95 each, plus shipping. Article reprints are also available for a fee. For more information, contact us at 866-746-8385 or service@bbiinternational.com. Advertising Ethanol Producer Magazine provides a specific topic delivered to a highly targeted audience. We are committed to editorial excellence and high-quality print production. To find out more about Ethanol Producer Magazine advertising opportunities, please contact us at 866-746-8385 or service@bbiinternational.com. Letters to the Editor We welcome letters to the editor. Send to: Ethanol Producer Magazine Letters to the Editor, 308 2nd Ave. N., Suite 304, Grand Forks, ND, 58203, or editor@bbiinternational.com. Please include contact information. Letters may be edited for clarity or space.
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Capturing and storing carbon dioxide in underground wells has the potential to become the most consequential technological deployment in the history of the broader biofuels industry. Deploying effective carbon capture and storage at biofuels plants will cement ethanol and biodiesel as the lowest carbon liquid fuels commercially available in the marketplace. The Carbon Capture & Storage Summit will offer attendees a comprehensive look at the economics of carbon capture and storage, the infrastructure required to make it possible and the financial and marketplace impacts to participating producers.
In This Issue
Bringing It Home
A strong theme throughout this issue assigns a business-driven attachment to the concept of “home.” Whether it’s farmers’ meticulous dedication to their land, a trade group hosting a conference in its home city, domestic policy guiding biofuels in the U.S., or ethanol producers who have elected to capture and store their carbon directly on-site near their operations, the home theme rides an undercurrent through this month’s coverage.
Starting on page 14, our in-depth cover story evaluates several ongoing and completed on-site CCS projects at plants across the country. Some are waiting on permits, some are nearing completion and some have already added profit to the budgets. A few will utilize nearby pipelines, but many won’t, lending confidence to the on-site storage model. Not all locations have geological capability to host injection wells, certainly, but those that do are seeing steady progress among the producers who call them home.
Next we explore the work accomplished and the goals remaining unfulfilled after 20 years of the Renewable Fuel Standard. Starting on page 20 (fitting, we think), industry experts who have been around for at least these past two decades reflect on the stability the RFS brought to the ethanol industry, while explaining the barriers they’re still focused on breaking through. Overall, the domestic ethanol market saw its start and success through the RFS. But more policy support is needed—especially for year-round E15—if the industry is going to remain strong, here at home and abroad.
Our third feature offers detailed coverage of the American Coalition for Ethanol’s 38th annual conference, held this year in the group’s home city of Sioux Falls, South Dakota. The event coincided with big updates to 45Z guidance, so it got some emphasis during a tax and compliance panel discussion. The conference also featured a leadership panel with big names from ACE’s executive suite, as well as voices from the U.S. Grains and BioProducts Council, experts in tariffs and trade, and more. Find it on page 26.
Finally, there’s a compelling article from RegenCorp in the back of this issue. With virtually every ethanol plant in the country striving for carbon intensity (CI) score reduction, this piece poignantly explains a unique way to do it: on-site biomass gasification. “Biochar, Biomass and Bottom Lines,” on page 34, explains how such systems can replace fossil fuels with renewable heat and power while cutting CI scores in half and monetizing the leftover biochar.
Enjoy the read.
-The Editors
Four Important Takeaways from the ACE Conference
Earlier this year, ACE members and friends gathered for our annual conference in Sioux Falls. It was an outstanding event in a new venue covering many topics and providing meaningful networking opportunities. In case you missed it, among the important takeaways, here are four of interest:
1. E15 legislation is a top priority in Congress. We have put great effort into the bipartisan bill to allow retailers to sell E15 year-round in all parts of the country, and Congress seems to have finally gotten the memo, which means the grassroots advocacy we have mobilized is paying off. During his keynote, Congressman Dusty Johnson (R-SD) thanked ACE for our advocacy and said there is “more than a 70% likelihood” this legislation will pass. We like those odds but implore you to keep Congress’s feet to the fire by using our online Action Center to send messages and make calls! There is also increasing pressure on Congress and the Trump administration to provide emergency financial aid to help farmers facing uncertain export markets, low prices, large crop surpluses and high input costs. What cannot be lost in this discussion is E15 year-round provides a market-based, long-term solution to increase domestic demand for corn, so we must finally get E15 legislation over the finish line in 2025.
2. 45Z buzz is real, yet clarity is needed. A big thank you is owed to the outstanding panel of experts from RSM, Christianson, and Mickelson & Company who provided valuable insight on the 45Z Clean Fuel Production Tax Credit during our conference. These companies explained the changes Congress made to 45Z and helped our ethanol companies make plans to maximize returns on investment. Hallway discussions during our event were almost entirely about 45Z. While there is significant enthusiasm, we still do not have final guidance for the credit, Treasury has said they do not expect to put out a proposed rulemaking until next year, and there’s no clarity on whether low-carbon farming practices can be used to help monetize 45Z. Therefore, we must remain vigilant in urging Treasury to speed up the proposed rulemaking and final guidance, and keep working to ensure low-carbon farming practices can be monetized through 45Z. This remains a top priority for ACE.
3. RFS blending volumes send strong signal for 2026 and 2027, but small refinery exemption (SRE) reallocation questions remain. The original RFS was signed into law 20 years ago and, despite some mismanagement from various administrations, it remains a bedrock for ensuring ethanol production and use in the U.S. The Trump administration deserves credit for proposing strong blending volumes for the 2026 and 2027 calendar years, including a minimum of 15 billion gallons of conventional biofuel and big increases for advanced biofuel and biomass-based diesel—which will help ensure excess supplies of these renewable fuels do not displace opportunities for E15, E30 and E85.
Despite strong RFS blending targets, questions linger about SREs. EPA is trying to follow caselaw from prior SRE litigation to work through a significant backlog of SRE petitions and decide whether exempt gallons will be reallocated to future years. The first Trump EPA allowed dozens of SREs without reallocating those blending volumes to other refiners, which caused RIN values to fall and reduced the incentive to blend E15 and E85. This time around, they are proposing to reallocate most or all of the SREs to future RFS blending targets, which is a very positive sign, but final decisions about the new approach to SREs and reallocation have not been made.
4. Sioux Falls’ homefield advantage. This was the first conference we have hosted in Sioux Falls in more than 20 years, and based on the overwhelming positive feedback we received from attendees, rest assured, Sioux Falls will become part of our regular rotation for conference sites.
Brian Jennings CEO
American Coalition for Ethanol
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Leveraging Ethanol’s Versatility in the Marine Sector
Shipping’s energy transition now runs on firm timelines and audited lifecycle emissions accounting. The International Maritime Organization’s updated greenhouse gas strategy sets a net-zero ambition “by or around 2050,” with waypoints for 2030 and 2040, and an expectation that zero or near-zero fuels begin showing up in meaningful volumes by 2030. Regional policies are already operational, as is interim IMO guidance, which also locks in a well-to-wake1 view of emissions.
Multiple decarbonization pathways are advancing, through efficiency upgrades, route optimization, alternative fuels and onboard capture. But near-term progress depends on access to compliant molecules at scale, with defensible lifecycle carbon and recognized certification. Capital will back options that leverage existing assets while other technologies mature. That is where ethanol is relevant.
The U.S. operates a large, export-ready ethanol infrastructure with roughly 18 billion gallons of nameplate capacity, steady production and record exports of near 2 billion gallons last year. Plants, rail, barge and port connections exist today. That footprint can support marine supply chains now and, where needed, feed conversion processes that yield candidate blendstocks for the distillate pool.
Methanol has driven real momentum in alternative-fuel newbuilds and retrofits. Public sources indicate by mid-2024, methanol accounted for roughly 9% of the global orderbook by vessel count (about 242 ships)2. As of early 2025, around 60 methanol-fueled vessels were in operation and about 340 were on order3 Industry materials also referenced roughly 700 “methanol-ready”4 designs5. That installed base is valuable infrastructure for alcohol fuels in general, and ethanol complements it. Ethanol and methanol are both simple alcohols with similar handling and safety requirements under the IMO’s low-flashpoint rules, so the same broad tank, piping, ventilation and detection concepts apply. That platform overlap makes methanol-capable designs a logical starting point for ethanol with original equipment manufacturer (OEM) calibration and targeted material changes. On a volumetric basis, ethanol offers higher energy density, helping extend range or reduce tankage. For owners and charterers, dual-fuel optionality across both alcohols diversifies feedstock risk, broadens sourcing and strengthens the procurement stack without forcing a binary choice.
With methanol-capable platforms now common, ethanol slots in as an add-on rather than a redesign. OEMs are already running compression-ignition trials with a pilot fuel, and the same IMO low-flashpoint rules apply. The near-term fit is controllable fleets through harbor craft, inland towboats and offshore support. This is where ethanol’s ultra-low sulfur/aromatics and particulate reductions matter; the known trade-offs versus marine gasoil (materials and energy density) can be handled with selective seal/line upgrades and engine control unit recalibration, then taken through testbeds, class approval and sea trials. Thus, shipowners get access to comparable power and emissions at modest capital, and a second audited fuel that spreads supply and compliance risk.
New fuel rules tend to raise costs before they lower them because demand arrives before supply. That timing favors pathways that add gallons quickly and document carbon credibly. U.S. ethanol assets are built for throughput. With modest, targeted capital for conversion units where warranted, better metering and certification, and CO2 capture where it pencils, producers can deliver molecules the bunker market will actually buy.
The U.S. Grains & BioProducts Council will bring its evidence-based approach to maritime: partnering with industry and national labs to build the data package for ethanol marine specifications and align well-towake accounting with international guidance. The Council will also work through shipping associations and U.S. agencies to ensure ethanol is recognized within IMO processes and national rulemaking, supporting market development from the ground up.
Ankit Chandra Senior Manager of Global Ethanol Export Development, USGBC
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Green Plains Appoints Chris Osowski as CEO
Green Plains has announced the appointment of Chris Osowski as chief executive officer and member of its board of directors.
Osowski most recently served as the company’s executive vice president, operations and technology, since January 2022 and has been a member of Green Plains’ Executive Committee since March 2025.
candidates, we focused on finding a leader who could accelerate our safetyfirst, measurement-driven culture of operational excellence. Chris stood out as the right choice to carry that agenda forward.”
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“Chris has the right combination of leadership, operational depth, and industry experience to lead Green Plains into its next chapter,” said Jim Anderson, chairman of the board. “As we considered several highly qualified
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Aemetis Signs Agreement with NPL Construction for $30 million MVR System
Energy Commission, and Pacific Gas & Electric. Construction on the MVR project is expected to be completed in Q2 2026.
Aemetis has announced that its U.S. ethanol subsidiary has signed an engineering, procurement and construction contract with NPL Construction to install a mechanical vapor recompression (MVR) system at the company’s 65 MMgy ethanol production facility in Keyes, California, with an estimated total project cost of $30 million.
The project has received approximately $19.7 million in tax credits and grants from the Internal Revenue Service (upon recommendation by the U.S. Department of Energy), the California
Once operational, the MVR system is projected to reduce natural gas usage by approximately 80%, generating an estimated $32 million of incremental annual cash flow from energy savings, increasing Low Carbon Fuel Standard credits from a double-digit reduction in the carbon intensity of ethanol produced, and increasing transferrable Section 45Z production tax credits.
POET Completes Purchase of Obion Facility from Green Plains
POET announced it has completed the acquisition of a 120 MMgy ethanol plant located in Rives, Tennessee, from Green Plains. The facility is now known as POET Bioprocessing–Obion.
POET purchased the facility for $190 million in cash, which includes an estimated $20 million in working capital, to be finalized post-closing.
Green Plains said the sale strengthens its balance sheet by eliminating its junior mezzanine debt and enhancing liquidity. It provides greater financial
flexibility consistent with the company’s strategy to optimize its portfolio and advance carbon reduction initiatives.
The Obion facility was commissioned in 2008. It has an annual production capacity of 120 million gallons of bioethanol and sits on 230 acres, with ample corn storage and rail infrastructure.
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LOCAL CO2 SOLUTIONS
Updates and insight from ethanol producers navigating the road to on-site or nearby carbon capture and sequestration operations.
By Luke Geiver
Carbon capture and sequestration opportunities across the U.S. ethanol production sector are not all created equal. From plant to plant, the list of variables any leadership team may have to navigate when working to bring a CCS project to bear can seem never-ending and nuanced—even the smallest differences can create big challenges. Above-ground geography and belowground geology both matter, but for different reasons. CO2 infrastructure experts and technology providers are important, so too are carbon-focused end-users. Internal team buy-in is crucial, almost as much as the support of external stakeholders.
The road to fully integrated CCS or carbon neutrality is—and has been—different from plant to plant for producers not linked to a multi-state pipeline solution. Those that have made progress to date have taken a multifaceted approach. Some are further along than others, sometimes based on their location.
Ethanol Producer Magazine checked in with several ethanol producers across the country on progress in planning, permitting
and their respective carbon-intensity reduction plans. Support for individual, plant-specific CCS has sprouted and spread—despite its challenges—from the Corn Belt to the West Coast.
Conestoga’s Net-Zero Goal
Conestoga Energy CEO Tom Willis says his team in Kansas was all about carbon before carbon was ever cool. According to Willis, Conestoga was the first to take lowcarbon fuel to California under the LCFS back in 2010. Through two Kansas plants, Conestoga produces roughly 200 million gallons of ethanol per year: 115 MMgy at the Arkalon facility near Liberal and 62 MMgy at the Bonanza plant in Garden City.
The Arkalon facility has been capturing CO2 for roughly 15 years as part of an enhanced oil recovery CO2 injection program operated by CapturePoint LLC throughout parts of Kansas and Oklahoma.
“We looked at carbon and said we could expand and grow,” Willis says of his team’s early adoption of a carbon-focused strategy. Today, Conestoga refers to itself as a low-carbon solutions provider, not just an ethanol producer.
“We are trying to become net zero,” Willis says.
To do that, Conestoga has expanded its CCS efforts to both plants. In May, the company announced drilling was complete on its first Class VI CCS well near its Garden City plant. Willis called the well the “cornerstone of Conestoga’s initiative to permanently store carbon dioxide emissions generated during the ethanol production process.”
The CCS project will be a long-term staple of Conestoga’s net-zero vision, Willis says, but the company will continue to explore ways to lower its CI score and maintain a strong connection to markets in need of carbon solutions, both domestic and foreign.
After completing work on the Class VI well, several interested parties from fertilizer manufacturers to warehouse owners have reached out to Conestoga regarding carbonsequestration possibilities. “They are coming to us,” Willis says. “We don’t have to go to them.”
The carbon-centric model is one others can follow, Willis says, regardless of a plant’s geographic or geologic footprint. While he notes some plants aren’t able to sequester,
he also says every plant can benefit from carbon-related planning or investments, some but not all of which are related to the continuance of the 45Z tax credit.
In addition to the 2024 purchase of a Class VI well which included the leases and easements, Conestoga has also purchased CCS equipment and a CO2 flood field that can use fermentation CO2 for enhanced oil and natural gas recovery efforts in Kansas. The Class VI well work has now moved onto the permitting stage for the U.S. EPA to review.
In August, Conestoga also acquired SAFFiRE Renewables LLC from Southwest Airlines Renewable Ventures LLC. As envisioned, SAFFiRE’s process technology will enable the production of ultra low-carbon intensity ethanol and intermediates.
Willis says his team is working on the buildout of a pilot plant at the Arkalon facility that could be ready by Q4 2026.
The SAFFiRE technology will aid Conestoga’s efforts to produce sustainable aviation fuel feedstock. “The IP acquired in this transaction will provide us with tremendous optionality, not only as it relates to SAF feedstock production, but across our operations,” Willis said in August. “The momentum behind low-CI fuels is undeniable, driven by regulatory requirements, corporate commitments and environmental necessity.”
On top of the Class VI well work, investment in SAFFiRE and the overarching company approach to become a multifaceted low-carbon solutions provider that just happens to make ethanol, Conestoga is planning to invest in paying and training farmers for grain traceability. Such an effort will further reduce the plant’s CI score and help make Conestoga’s sustainability-infused growth plan “sustainable,” Willis says.
One Earth Sequestration
Since first partnering with the Illinois State Geological Survey in 2020, Illinoisbased One Earth Energy continues to make progress on a CCS well and CO2 pipeline project that would capture and inject fer-
mentation CO2. A proposed 5.62 mile underground pipeline would move fermentation CO2 from the ethanol plant to an injection well that has already been drilled.
Steve Kelly, general manager for the plant near Gibson City, says his team continues to work through the EPA to receive the Class VI permit for the well. The EPA expects a final permit decision in March 2026, according to the agency’s Class VI well permit tracker.
One Earth Energy created a website—One Earth Sequestration—to keep the public updated on the project, specifically around water quality and safety. The new website explains the state-of-the-art safety features that will be used, including automatic shut-off valves, around-the-clock in-person monitoring, reduced pipeline segments, leak detection, flow measurement devices, monitoring wells, six-foot burial and underground signage and more. Kelly and the team have also organized hazmat training hosted by the Illinois Fire Service, in addition to specific CO2 pipeline training hosted by ExxonMobil. The current work is all in addition to the pre-feasibility and geological studies One Earth Energy already completed to ensure such a project would be economically and environmentally sound, Kelly says.
The next milestones on the timeline revolve around the Class VI permit, acquiring the Certificate of Authority from the Illinois Commerce Commission to construct a CO2
pipeline and securing a Special Use Permit in McLean County, Illinois, at the sequestration well site.
Kelly says the company has worked with governing bodies ranging from local municipalities up to state and federal agencies. It has also worked with landowners to voluntarily secure pore space and pipeline lease agreements. One Earth has held more than 70 public meetings or sessions with farmers.
The CCS work and investment will impact the plant and community in multiple ways, Kelly says. “Once completed, our CCS will capture and compress 521,000 metric tons of CO2 annually. That’s like taking nearly 124,000 gasoline-powered cars off the road for one year.”
According to One Earth Sequestration, the project will generate $231 million in economic activity for Ford County, Illinois, including more than 300 new jobs and nearly $19 million in county and state tax revenue.
“For One Earth Energy, it means we’ll have the opportunity to expand our business into sustainable aviation fuel, which is the next step in renewable fuels,” Kelly says. “It also brings additional stability and longevity to our business and community.”
Chief Ethanol Set for November
Nebraska-based Chief Ethanol General Manager Wayne Garrett joined Brooke Rol-
SET FOR NOVEMBER: Chief Ethanol will begin capturing and compressing CO2 produced at both of its Nebraska ethanol plants in November 2025. PHOTO: CHIEF ETHANOL
lins, USDA Secretary, in Nebraska in August to talk biofuels, agriculture and America’s renewable energy future. In November, Garrett expects to be capturing CO2 from fermentation ethanol.
Starting in 2021, Chief Ethanol partnered with Catahoula Resources and the Energy Minerals Group along with Battelle to develop CCS solutions for Chief’s two ethanol plants in Nebraska.
The new CCS infrastructure will capture and store 350,000 metric tons of CO2 through compression stations that will ultimately link to a Catahoula operated pipeline solution.
Gevo Selling Carbon Credits
Gevo Inc. has already earned dividends from its $210 million acquisition of a North Dakota Ethanol plant fully equiped with operating CCS assets. After purchasing Red Trail Energy in early 2025, Gevo CEO Patrick Gruber renamed the assets Net-Zero North.
In July, Gevo announced it was officially selling carbon abatement credits into the market. The CCS process creates a carbon removal credit or CO2 removal certificate (CORC). In Gevo’s case, a global financial and technology company purchases CORCs and then retires them to meet its own CO2 abatement requirements.
Puro.earth, a Nasdaq-funded firm that certifies CORCs across the globe and pro-
NET-ZERO NORTH: After acquiring the assets of Red Trail Energy in early 2025,
produced via
PHOTO: GEVO INC
vides a marketplace for suppliers and buyers, provided certification of the Gevo produced CORCs.
“Gevo is demonstrating that durable carbon removal isn’t some distant solution,” says Trenton Spindler, chief growth officer of Puro.earth, “It’s available now. With Puro.earth. certified CORCs, buyers worldwide can act decisively to tackle their toughest emissions with confidence in real, permanent results.”
Puro.earth has strict standards for CORC generation, including 1,000-plusyear permeance of storage. In July, Puro. earth’s CORC index showed CORC prices at roughly $150 each. From 2020 to November 2024, Puro.earth said the use of CORCs increased by 1,200%, rising from 12,000 units produced and sold per year to nearly 160,000. Starting in 2022, many CORC buyers began seeking offtake agreements of three- to five-year periods, but by 2024,
NEW FOOTPRINT: Blue Flint Ethanol has been operating an on-site CCS system since 2023, reducing its carbon footprint and expanding the facility’s layout. The white, oblong building with yellow piping near the center of the photo houses technology for CCS operations.
PHOTO: FOLTZ PHOTO/BBI
Gevo Inc. has sold carbon credits
CCS at the North Dakota facility.
many larger CORC buyers were looking for even longer-term CORC supply agreements.
Blue Flint’s CCS Tax Equity Benefits
CCS work at Harvestone Low Carbon Partners’ Blue Flint Ethanol plant in North Dakota continues to pay off. After commencing operation of a 125,000-metric-ton CO2 capture infrastructure and pipeline project in 2023, HLCP announced nearly a year later that it had closed on a first-of-itskind tax equity financing round with Bank of America worth $205 million.
HLCP was able to structure a tax equity financing package that would allow Bank of America to participate in the 45Q federal tax credit benefits and purchase 45Z clean fuel tax credits generated by Blue Flint’s CCS biorefinery operations.
Karen Fang, global head of sustainable finance at Bank of America, says her team has a strong track record of innovative financing transactions for decarbonization technologies including CCS. Essentially, Bank of America receives that tax credit benefit in exchange for financing. HLCP has not said how it will utilize any Bank of America proceeds, but it does operate additional ethanol facilities that are actively developing or studying CCS infrastructure in North Dakota and Indiana.
Permitting in Process
The Andersons Inc. has acquired full ownership of the four ethanol plants it previously co-owned with a subsidiary of Marathon Petroleum Corp., a move the publicly traded grain and biofuels company says will allow for greater efficiency and streamlining of its operations. In its Q2 earnings call, the company stated that the regulatory environment for biofuels, “may support new opportunities,” including at the company’s Clymers, Indiana, facility where a Class VI well permit has been filed with the EPA for CCS.
Front Range Energy in Colorado continues developing its CCS operation, with a completed test well on its property, and is awaiting the Class VI permit. Through a subsidiary called Carbon Capture Solutions, Front Range Energy is playing a part in shaping the future regulatory and compliance framework for CCS in Colorado. In December 2024, representatives from Carbon Capture Solutions participated in discussions with the Colorado Energy & Carbon Management Commission (ECMC) regarding state-level authority over geologic carbon storage. ECMC has now created a state-based policy on CCS with the goal of obtaining primacy over the EPA, similar to other states, including North Dakota, Wyoming and Louisiana.
In California, Aemetis awaits approval of its Class VI well permit for CCS op-
eration that will inject roughly 1.4 million tons of CO2 into a saline formation. Baker Hughes, an oil and gas drilling company, is leading the underground engineering and drilling work, including consultation and project design. ATSI, an engineering, procurement, construction and project management firm, is helping on the project as well.
Expertise and Experience
Vault 44.01 is contracted or partnered with seven different ethanol producers. The CCS experts help each create on-site or near on-site CCS capabilities. Scott Rennie, president and CEO of Vault 44.01, says despite a range of challenges each plant may face, Vault 44.01 has a unique combination of technical expertise and CCS experience.
Hugh Caperton, senior vice president of development for Vault, says the company has grown a presence across the ethanol sector because it has expertise in all facets required to make a CCS project successful, including landowner agreements, commercial development structuring, technical expertise and permitting.
Cardinal Ethanol was the first to join with Vault 44.01. Today, other Vault 44.01 partners include plants owned by Valero, POET and Alto Ingredients. Cardinal Ethanol could earn its Class VI well permit in January 2026, according to projections by the EPA tracker database.
PROVEN APPROACH: Geostock Sandia drilled the stratigraphic test well in Illinois for underground storage of CO2 sequestration in 2025.
PHOTO: GEOSTOCK SANDIA
Rennie is quick to point out that the state where a CCS project is located greatly impacts the timeline for completion. North Dakota has seen multiple projects completed because the state has primacy over CCS regulations and permitting. States without primacy must rely on federal regulations, drawing out the timeline. The current administration has made a big difference in the speed at which the Vault team can move on permitting progress, Rennie says.
“We’ve made more progress on our permits recently than we have in the previous two years under the past administration,” Rennie says.
Like Rennie, Caperton is optimistic about the pace of project timelines in 2025 and beyond. He points out that CCS has always had bipartisan support in Congress. Every project will have challenges in design, community engagement and permitting.
“For us, it comes down to having the right skillset and energy level to bring these things to completion,” Rennie says. “Our team had a track record even before we started helping ethanol producers.”
Both Rennie and Caperton believe the ethanol sector’s CCS abilities will act as a seed from which producers and future industries can grow.
“CCS is a gateway,” Caperton says.
For its current producer partners, Vault is focusing on on-site or near on-site CCS. Initially, the team explored options to create connected CO2 sequestration hubs. Rennie says the economics and land commitment agreements were too difficult to pursue. The cost of running and operating pipeline can sometimes be in the range of $1 million or more per half mile. Some CO2 hubs connecting ethanol plants would need at least 40 miles of pipeline, Rennie explains, as most plants in a concentrated area suitable for a hub are 40 to 50 miles apart.
In most cases, Vault is capturing a single source of CO2 and has a flowline on the producer’s property connected to a sequestration or compression station.
“If you were to look at our projects from outer space, the projects are going to look very similar,” Rennie says.
In March last year, Alto Ingredients signed with Vault to further its CCS aspirations. Through the agreement, Alto will install CCS equipment at its Pekin, Illinois, dry mill, and Vault will transport and permanently store the CO2 underground within close proximity.
Bryon McGregor, president and CEO of Alto, says the agreement with Vault will serve shareholders and community stakeholders alike. In addition to operating two ethanol production facilities, Alto operates a liquid CO2 facility in Boardman, Oregon. In early 2025, Alto acquired Kodiak Carbonic LLC, a beverage-grade liquid carbon dioxide processor for $7.25 million.
“In our ongoing pursuit to optimize product value, we identified the beveragegrade liquid CO2 plant as a significant opportunity and pursued the acquisition to continue to expand our premium ingredients portfolio,” McGregor says.
The Time Is Now for On-Site CCS
Rennie says there has never been a better time for CO2 producers like Alto, Cardinal Ethanol and others to pursue CCS. “Now is the right time. The industry has learned a lot about CCS and the current administration has a proclivity for action and accountability.
“The project with Alto exemplifies our view that one of the best options for CCS is often a local solution.”
Sylvain Riba, president and CEO of the Houston-based team of underground energy storage and subsurface injection experts at Geostock Sandia, says the ethanol industry has maintained CCUS momentum since an uptick started in 2020. Riba and his team have been involved with eight ethanolrelated CCS wells in the Midwest over the past five years, including the well for North Dakota’s Blue Flint Ethanol.
“We make the earth the best place to store energy,” Riba says. “We know how to drill wells and demonstrate this is the right place to store.”
Geostock Sandia expanded its drilling services for Class VI wells in the early 2000s
and has since been a big participant in the CarbonSAFE program under the U.S. Department of Energy. Prior to that, Geostock Sandia helped lead the creation of salt cavern storage for hydrocarbons in the U.S.
Like the natural gas industry, Riba says many ethanol producers are now aware of the value and need for storing carbon.
“A lot of producers realize it’s possible to reduce the intensity of the existing industry and infrastructure in-place,” Riba says.
Successful projects led by teams like Geostock Sandia have helped show what is possible, he adds. The addition of voluntary carbon markets and private equity investors that want to participate in CCS or credit markets has also helped build momentum in the ethanol space.
“If I’m an ethanol producer today, I need to know CCS is safe, it is cost effective and it can really help improve your product,” Riba says.
He explains that a project started in 2025 will still take roughly three years to go through studies, well testing, permitting, infrastructure build-out and additional work, he says. Geostock Sandia can provide management of the process, man the facilities or train current workforce and help maintain the infrastructure for the life of the well. States including North Dakota, Illinois, Kansas, Nebraska and Indiana are all prime for well drilling, he says.
Because of the work and history of Geostock Sandia, Riba says the process today is simpler than most might think. It’s about logistics and managing the land, all skills ethanol producers already possess, he says. Trading on the carbon market is similar to any other daily process, including managing grain payments, he adds.
“Underground storage is really safe and now the momentum is there and it is a really good time to do it,” Riba says. “You don’t have to bring a lot of technology or create a complex logistics process. It doesn’t have to be that complicated.”
Author: Luke Geiver writer@bbiinternational.com
RFS: LOOKING BACK 20 YEARS
Industry insiders pause to reflect on the defining force of the Renewable Fuel Standard while continuing forward momentum.
By Holly Jessen
To mark the 20-year anniversary of the RFS, Ethanol Producer Magazine spoke to several longtime members of the ethanol industry about what has been accomplished as well as what’s next on the horizon.
These voices represent a cross section of the industry, from those working directly at ethanol plants to service providers in the technology, financial and consulting arenas.
Clearly, the RFS has shaped the biofuels industry as well as revitalized American agriculture. But there’s more work to do.
Bold Entrepreneurship
When asked to reflect on the successes and shortcomings of the RFS, Dave VanderGriend doesn’t hold back. VanderGriend first entered the industry in the 1970s and founded ICM Inc. with his late brother Dennis Vander Griend (who spelled his last name with two words) in 1995.
First, VanderGriend says his past self would have been surprised to see the fast growth of the ethanol industry. Thanks to the RFS, the ethanol industry’s competitor—the petroleum industry—became its customer. It didn’t take long to realize that blending ethanol with gasoline allowed a reduction in highly carcinogenic aromatics. “The aromatics are more expensive to make than ethanol and less effective as an octane enhancer than the ethanol,” he says. “So it was a win for the petroleum industry that they will never admit.”
While VanderGriend is thankful for the RFS, he’s more interested in looking to the future. “We’re already producing 17 billion gallons and 2 billion are being exported,” he says. “How do we get from 17 billion to 20 billion, as the next step? Because our capabilities to grow the crop have expanded right along with the increased demand.”
He’d like to see more ethanol producers embracing the kind of rapid growth and innovation that used to be common among early ethanol industry pioneers. “The courage
of the industry early on is not reflected today,” he says. “You go into protect mode, not entrepreneurial growth mode, and that’s kind of where we’re at today.”
VanderGriend is also frustrated with the lack of movement beyond E10 to higher blends. He points out that ethanol is an additive fuel. “We are not an alternative, even when you get to the best blend ratio for vehicles today, which is about 30% ethanol and 70% gas. We’re never going to be 70% ethanol and 30% gas except a flex fuel vehicle. And we
sacrifice significant performance to do that.”
The myth that higher blends of ethanol are illegal prompted VanderGriend to partner with Jump Start in 2018 to purchase convenience stores and convert them to sell E10, E20 and E30, which are sold as regular, premium and super premium.
Jump Start stores sell higher blends of ethanol on price alone. Super premium fuel, a 93 octane blend with up to 30% ethanol, is popular with consumers because it’s 10 cents cheaper.
20 YEARS LATER: The Renewable Fuel Standard was a “significant turning point” for the ethanol industry, says John Christianson, president of Beyond and Christianson Benchmarking. Christianson and other industry experts spoke with Ethanol Producer Magazine about the policy’s legacy 20 years on.
PHOTO: STOCK PHOTO
Jump Start has been extremely profitable and has 35 stores in Wichita, Kansas, and the surrounding area, with 40 expected to be in operation by the end of 2025. “That fuel has been in every model of car, old or new, probably every lawn mower, weed eater and motorcycle out there,” VanderGriend says. “… And you know how many complaints we’ve had? Zero. Zero complaints.”
Which brings him back to that feeling of frustration. He’d like to see clarification from the U.S. EPA allowing the use of higher blends of ethanol in all vehicles. However, even without that, he believes the ethanol industry can move forward with selling higher blends of ethanol, like Jump Start is already doing successfully.
Remove Political Barriers
John Christianson, president of Beyond and Christianson Benchmarking, has been working with the ethanol industry since 1997, when there was uncertainty in both the
'We just need to have a level playing field so that the industry can compete within the market.'
- John Christianson, President of Beyond and Christianson Benchmarking
technology and the market. The RFS helped investors and lenders feel secure that the industry was real and that there was going to be a market for ethanol, he says. “It was a significant turning point for the industry to have that certainty.”
Since then, the industry has transformed at an accelerated rate. That’s something Christianson has been uniquely positioned
to witness over the past 20 years, thanks to Christianson’s Biofuels Benchmarking program, which collects data from 40% of North American ethanol producers. In that time, ethanol producers have reduced energy use, cut water emissions, adapted technology to increase yields of ethanol and corn oil, and more. “That has been truly amazing to watch the innovation within the industry,” he says.
Looking ahead, there’s a potential agricultural crisis coming, created by the combination of expected record crops and unstable export markets. Biofuel is the answer to use up that record amount of corn and soybeans, Christianson says. “Higher blends of ethanol and higher blends of renewable fuels would be a significant benefit to the ag sector as well as to the consumers.”
To get there, the industry needs timely announcements setting the renewable volume obligations (RVOs). Next, Christianson would like to see legislation providing incentives for flex fuel vehicles. Finally, allowing nationwide, year-round E15. That’s not a mandate to use the fuel, he clarifies, it’s simply allowing it into the marketplace so consumers can choose. “We just need to have a level playing field so that the industry can compete within the market,” he says. “And that we don’t put up any political barriers to having that unfettered access to an equal market.”
RFS AND E15: Ethanol experts say the RFS has been a boon for ethanol in the past 20 years, but the lack of approval for year-round E15 has held it back.
PHOTO: STOCK PHOTO
Continued Education, Investment
McCord Pankonen, managing director of North American Biofuels at EgoEngineers, has been a part of the ethanol industry since before the RFS was created. He graduated from college in South Dakota with a degree in biology and computer science and was able to get a job at an ethanol plant under construction in Madison, South Dakota. “Little did I know that it would become my career and lifelong passion,” he says.
In the past 24 years, Pankonen has worked in a variety of positions, including being a general manager of an ethanol plant, before taking on his current position with EcoEngineers. He describes the wide reaching effects of the RFS as the branches of a tree. “When the RFS was signed and put into place, who knew how this was going to work out,” he says. “But it certainly worked out in a way that has illustrated America being a leader in biofuel production globally.”
To take the industry to the next level, Pankonen also points to E15. He acknowledges there has been a lot of great work to educate consumers that ethanol is not harmful to engines. However, he’d like to see more educational efforts that explain the benefits of E15—what it can do for the climate and cutting greenhouse gas emissions. “I think we can do better (telling the story on) why biofuel production can make a difference in the air quality,” he says.
There’s also a need for continued investment and expansion, something that has to be driven by policy that will allow for continued growth. That’s what it’s going to take for the industry to meet future RVOs. “We need to continue to keep our nose to the grindstone, and move the industry forward,” he says.
Consistency, Consistency, Consistency
Tom Willis, CEO and president of Conestoga Energy Partners has been with the company since 2006, when it was created, and
Without Microbial
he holds the same title today as he did back then. Now with two production facilities located in Kansas, the company also has the distinction of being the first ethanol production plant to sequester CO2.
The RFS has been a tremendous success, Willis says. In fact, he believes it’s the single biggest positive program for rural America. “It really showed the power of agriculture, being able to help fuel in a renewable way, our energy portfolio.”
Thinking back to those days, Willis is surprised and happy how much progress the industry has made in debunking myths such as the food-versus-fuel debate. “Well, here we are, 20 years later, we got corn in some places under 3 bucks because the American farmer ... stepped up and planted and we’re swimming into excess again,” he says. “The productivity of the American farmer never ceases to amaze me.”
But consistency is needed to truly unleash the power of the biofuels industry. “That’s probably been the biggest thing is, ev-
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ery year, well, we’ve got to negotiate this,” he says. “We’ve got to negotiate that. We’ve got to do this.”
That includes everything from RVOs to small refinery exemptions (SREs) and getting certain pathway approvals. “We need consistent policy,” he says.
One of the biggest needs is year-round E15, to replace yearly waiver approval. The uncertainty is holding some convenience stores back from adding E15 to their fuel offerings. “They’re not going to do it if it’s a year at a time,” he says. “There needs to be some consistency in it. There needs to be certainty in it. And you’ll drive the ultimate power that the RFS was meant to have.”
Environmental Pressure
Derek Peine, CEO of Western Plains Energy LLC, has been working in the drygrind ethanol industry since 2005. Looking back, it was always surprising to him how much opposition the ethanol industry faced from the environmental community. “I’ve
always felt like biofuels has been a great example of bringing sustainability to the transportation fuel sector,” he says. “And then, growing up in rural America, I’ve always felt like farmers are stewards of the land. In fact, their livelihoods depend on it. So things like food versus fuel and land-use change are two examples that I never really felt like were justified, and that they got a lot more attention than was deserved.”
Thanks to the RFS, biofuels are now firmly established as an important component of liquid transportation fuels. “For a long time, we fought to just be recognized,” he says. “Today, I think we’re more than recognized. I think consumers are more accepting. And I think today is just a more natural fit that we’re here in the industry. We have a place and we serve a purpose.”
Looking to the future, the biofuels industry must push beyond the blend wall, Peine says. “I think a shift, maybe, from having this, what we perceive is a security net from the RFS, to moving to where it’s just expected,
and recognizing the full value that our products bring to consumers.”
He’s been pleasantly surprised that in recent years, the relationship between biofuels producers and the petroleum industry improved. “I think it’s been refreshing to see that, and I’m optimistic that those relationships will grow stronger over the next few years.”
The younger generations care much more about sustainability, climate and the environment, he says, adding that both industries need to be honest with themselves about consumer expectations and provide products consumers want to buy in the future. The reality is there’s environmental pressure against transportation fuels that isn’t going to go away.
“I’m convinced that, with a strong partnership between the petroleum industry and the biofuels industry, we could innovate together and continue to deliver the products consumers want to buy,” he says.
Author: Holly Jessen writer@bbiinternational.com
THE ‘HOMEFIELD ADVANTAGE’
Ethanol producers and industry experts gathered at the American Coalition for Ethanol’s 2025 conference to learn, celebrate and collaborate.
By Katie Schroeder
Photos by American Coalition for Ethanol
The 38th American Coalition for Ethanol Conference celebrated ethanol’s “Homefield Advantage” and discussed strategies to leverage that edge moving forward. Brian Jennings, CEO of ACE, explained that this year’s theme was born out of the organization’s work with farmers to make changes at the field level that could help ethanol producers reach new markets in the future. The name was also a reference to this year’s location—Sioux Falls, South Dakota—ACE’s homebase.
ACE’s leadership held a panel to open the general session on Aug. 20, which included Jennings; Dave Sovereign, ACE’s chairman of the board; and Ron Lamberty, chief marketing officer with ACE. The group addressed the possibility of a record-breaking corn crop, projected by the U.S. Department of Agriculture to reach nearly 17 billion bushels, 188 bushels per acre. The conversation circulated
around identifying potential market opportunities that could allow ethanol producers to grind more corn. Sovereign cautioned against reading too much into this prediction before harvest, saying severe weather events could still reduce corn yields significantly.
“The corn is exceptionally tall this year, it’s got exceptionally big ears and we’re going to be pretty susceptible to some wind damage that could really slow down the harvest process,” Sovereign said. “But what are we going to do with these bushels? Fortunately, we live here in the Midwest. Our governor[s] signed a waiver and we’re able to bring E15 into our Midwest states. And that sets a big example for the rest of the country.”
The discussion also touched on the possibility of leveraging the large corn crop to put pressure on policymakers to finalize E15 policy and alleviate farmers’ financial burden in the midst of low corn prices.
Getting E15 year-round is a priority because many fuel retailers want to avoid deal-
ing with the uncertainty caused by reliance on waivers, Lamberty explained. This lack of clarity fuels retailers’ hesitation to invest in the infrastructure needed to offer it to their customers. Lamberty added that he thinks most of the hurdles in the way of E15 adoption have been removed. “I think it’s going to go big fairly quickly now, and I’ve never said that before.”
Sovereign and Lamberty both talked about the market interest in E15 and E85, with Sovereign saying around 30% of his sales at his gas station, Cresco Fuels, located in Cresco, Iowa, come from E15. “I recently saw a study where they said 85% of people buy their fuel based on price, and I think the other 15 lies,” Lamberty joked. He emphasized that although the industry wants consumers to understand the benefits to rural communities and the environment, the purchasing decision often comes down to cost savings.
Beyond E15, the trio addressed a variety of topics, including renewable volume obliga-
tions (RVO) and their impact on renewable identification numbers (RIN) values and trade dynamics.
Sovereign expressed optimism about the trade deals being made with other countries, saying they might help open the door to further opportunities. Lamberty added that there is not a lot of fearmongering in these countries, which is a good sign for the fuel’s growth. The acceptance of higher blends by U.S. trading partners is another encouraging element, Jennings noted.
The Section 301 investigation initiated by the Trump administration into Brazil’s unfair trade practices, such as the country’s 18% tariff on American ethanol, is “critically important,” Jennings explained. Despite its tariffs, Brazilian sugarcane ethanol receives favorable treatment under California’s Low Carbon Fuel Standard and the U.S. Renewable Fuel Standard. “We’re hoping that we can get this issue rectified, and that market can once again be something we are looking at,” he said.
LEADERSHIP INSIGHTS: The leadership panel discussion that kicked off the 38th annual American Coalition for Ethanol Conference in August featured (from left): Brian Jennings, CEO of ACE; Dave Sovereign, chairman; Ron Lamberty, chief marketing officer. The trio discussed a plethora of topics, including the upcoming renewable volume obligations, trade dynamics, E15 and more.
CONNECTION AND CONVERSATION: The ACE annual conference brings together experts from across the ethanol industry to learn and network.
Demystifying 45Z
Following the leadership discussion, tax and compliance experts representing several companies that serve the ethanol industry took the stage and gave ethanol producers insight into applying for and selling 45Z tax credits, as well as the changes delivered by the One Big Beautiful Bill Act (OBBBA). The panel included Dana Jackson, partner for clean energy incentives at RSM US LLP; Rebecca Johnson, tax and research manager at Christianson PLLP; and Faith Larson, vice president, renewables and legal counsel with Mickelson & Company.
Jackson explained that the OBBBA extended 45Z until 2029, giving producers more time to take advantage of tax credits. It also maintained transferability of credits and prohibited use of feedstocks originating anywhere other than the U.S., Canada or Mexico.
An item not addressed by the OBBBA is what financial benefits will be available to
farmers who utilize low-carbon farming practices. Johnson explained the guidance is not currently integrated into the GREET model, meaning ethanol producers cannot accurately determine how much money they could gain from purchasing corn grown with these practices. She stated that the model for calculating emissions reductions was sitting with the De-
partment of Energy and USDA at the time of the conference.
Larson outlined how plants monetize tax credits and the significance of transferability for less than the credit’s worth. If an ethanol producer has $10 million in section 45Z tax credits, a company could buy it at 92% of its value, at $9.2 million. This allows the buyer to
CREDIT OPPORTUNITY: Tax and compliance experts joined Jennings onstage to discuss 45Z tax credit requirements and opportunities. From left: Brian Jennings, CEO of ACE; Dana Jackson, partner at RSM US LLP; Rebecca Johnson, tax manager at Christianson PLLP; and Faith Larson, vice president of renewables and legal counsel with Mickelson and Company.
realize an $800,000 margin by offsetting their tax bill with the credit.
Documentation is crucial because it helps the buyer verify that the tax credit is worth the money, Jackson explained. RSM works with ethanol producers to gather the documentation needed to supply buyers with the required information. She added that this documenta-
tion comes in the form of a “robust tax opinion, which walks through all known requirements of the 45Z credit.”
Prevailing wage and apprenticeship requirements are challenging to document and utilize and may seem daunting, but can pay off, Jackson explained. When met, they grant ethanol producers five times the credit value.
Larson added that ethanol producers will most likely be able to sell their tax credits for around 90% to 94% of their value.
Trade and Markets
Linda Schmid, multilateral ethanol policy manager with the U.S. Grains and BioProducts Council, updated ethanol producers on export
WORLD AFFAIRS: Linda Schmid, multilateral ethanol policy manager with the U.S. Grains and BioProducts Council, updated attendees on the status of ethanol exports in different countries, emphasizing both promising opportunities and potential challenges.
CI IMPACT: Schmid also sat on a panel that explored climate-smart farming practices. From left: Martin Baker, senior director, natural climate solutions, Anew; Schmid; Tom McKay, senior program manager, circular economy solutions, BASF; Ron Alverson, board member, Dakota Ethanol.
market trends. USGBC works to identify various tariff and non-tariff barriers in different markets. Schmid said the council submitted comment to the U.S. Trade Representative on the African Growth and Opportunity Act as well as the Brazilian market. Africa has “huge” market potential, but several countries have exceptional tariffs that impede access, such as Angola at 55%, she cited.
“We focus very seriously on increasing blend rates,” she said. The USGBC works closely with foreign ministries of finance, trade and energy to explain ethanol’s benefits. These efforts have borne fruit in the Philippines and Latin America.
Although India and Brazil have high blend rates—20% and 30% respectively— both countries have limits on American ethanol, Schmid explained. Brazil currently has an 18% tariff, and India only allows imports of ethanol for industrial use. Some other countries have ethanol tariffs in place as a holdover from tariffs on alcoholic drinks.
Fossil fuel subsidies constitute another challenge for ethanol on the global stage by making ethanol uncompetitive from a price standpoint when compared with fossil fuels. Some countries that have these subsidies include India, China, Malaysia, Indonesia and Nigeria. “Going into low- and medium-income economies, we find that ethanol has a higher hill to climb because of these fossil fuel subsidies,” Schmid said.
Another focus for the council in lowerincome countries is communicating standards adoption and implementation for every ethanol use case, ranging from on-road use to clean cooking. Schmid said USGBC explains the ASTM standards for ethanol and ensures the private sector uses them, makes sure they are functioning in the marketplace, and checks for quality control. “When we see those standards in place, we see an uptick in ethanol demand,” she said.
The U.S. has diverged from the rest of the world in climate policy, as other coun-
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tries increase climate mitigation policies and restrictions on products that contain carbon, according to Schmid. This trend is not likely to change.
The largest share of tariff revenue collected by the U.S. is on consumer goods at 14%, with 10% coming from industrial intermediates. “This, I think, is concerning, because the tariffs on those industrial intermediates, that’s tax on production,” Schmid said.
Schmid also discussed the Section 301 investigation into Brazil and the challenges facing American ethanol producers in the Brazilian market. Tariffs are not the only obstacle to Brazil’s market; the challenge also comes from the country’s Renova Biofuels policy and the way it calculates carbon intensity. “They trace it back to the farm, they don’t use mass balance at all, the Brazilian producers,” she said. “We want them to fix that. We want them to recognize the way that we regulate conservation and deforestation in the United States.”
The next panel discussed new markets in the chemical and transportation sectors, moderated by Jessica Monserrate, head of sustainability in North America with BASF. The panelists included Ron Alverson, founder of Dakota Ethanol and farmer; Tom McKay, senior program manager, circular economy solutions with BASF; Schmid; and Martin Baker, senior director, natural climate solutions with Anew. Monserrate explained that the panel’s goal was to clarify what qualifies as a high-integrity chain of custody.
Alverson shared his perspective on what makes 45Z valuable for farmers and talked about the potential for CI reductions based on the U.S. Department of Agriculture’s Feedstock Carbon Intensity Calculator (FD-CIC).
Schmid explained that the combination of low-CI farming practices and increased ethanol yields create a natural flow into the chemical market. The USGBC office in India determined that total ethanol demand for chemicals was around 1 billion liters last year, growing by about 5% each year. “I think that you can really have all of these markets,” she said. “The low-carbon fuel markets, I think, would lead very nicely into the chemical markets as well.” Getting the chemical companies on board to help reduce trade barriers would be useful in improving educational awareness in regions such as Europe, where there is less of an understanding of the GREET model and how U.S. ethanol producers operate.
McKay outlined chain of custody and expressed that the chemical industry favors the mass balance model when it comes to carbon attribution because it is widely accepted and customers prefer the certainty of following a physical material to its origin. He explained that the chemical industry is currently unable to make use of any credits gathered via book-and-claim.
Since there are currently no government tax incentives for chemical companies, monetizing those activities must come through carbon markets. Baker explained that Scope 3 emissions—contributing 95% of emissions across the supply chain—could drive lower-CI options.
Clear Top Priority
Looking toward the end of 2025, securing new markets and expanding existing ones are the key talking points. In an interview with Ethanol Producer Magazine at the conference, Jennings singled out E15 as “the first, second and third priority” in ACE’s advocacy work in Washington D.C.
“We’ve got to finally get this bipartisan bill across the finish line and give the certainty to the marketplace that it needs for those retailers that are still standing on the sidelines, that are unwilling to get into the E15 market in conventional gasoline areas where you have that summer restriction,” Jennings said.
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How ethanol producers can slash CI and profit from carbon removal.
By Cornelius van Tonder
As U.S. ethanol producers prepare for the implementation of 45Z, one thing is clear: carbon intensity (CI) is no longer just a regulatory metric—it’s a revenue driver. Achieving CI scores below 30 grams of CO2 equivalent per megajoule (gCO2e/MJ) has become the new standard for accessing premium markets, complying with evolving policies and
maximizing federal incentives. Yet many producers still hover between 65 and 80 gCO2e/MJ, largely because of their reliance on fossil-based heat and power.
A transformative solution exists, and it’s available now: integrating on-site biomass gasification systems to replace fossil fuels with renewable heat and power, while monetizing biochar as a carbon removal credit. This dual-impact approach not only cuts CI scores by more than 50%, but also
creates new revenue streams, stabilizes energy costs and delivers a powerful, closedloop sustainability narrative that benefits growers and fuel producers alike.
Modern ethanol plants are heat-intensive facilities, consuming vast quantities of natural gas for steam generation and significant grid electricity for operations. Energy inputs typically account for a substantial portion of operating expenses and are a primary contributor to high CI scores.
CONTRIBUTION: The claims and statements made in this article belong exclusively to the author(s) and do not necessarily reflect the views of Ethanol Producer Magazine or its advertisers. All questions pertaining to this article should be directed to the author(s).
CARBON REMOVAL: Biochar is recognized as a durable carbon removal pathway by voluntary markets. This photo features biochar certified by the International Biochar Initiative.
PHOTO: REGENCORP
By contrast, biomass gasification replaces these fossil inputs with syngas derived from crop residues such as corn stover, wheat straw or other regionally abundant biomass. A modular 20 tons-per-hour (tph) gasifier system can provide up to 90 MW of thermal output—enough to fully meet the heat and power requirements of a typical 50 to 66 MMgy ethanol facility.
This shift doesn’t just eliminate fossil emissions. It also positions producers to become energy self-sufficient, insulating them from fuel price volatility and grid reliability risks, stabilizing long-term financial projections.
Gasification yields more than just syngas. Roughly 15% of the processed biomass remains as biochar, a carbon-rich solid that locks away a portion of the feedstock’s carbon content for centuries. According to lifecycle analysis, each ton of biochar represents about 2.65 tons of CO2 permanently sequestered.
This sequestration is no longer just an environmental benefit—it’s a financial opportunity. Voluntary carbon markets now recognize biochar as a durable carbon removal pathway, with credits selling at premium prices compared to nature-based offsets.
Market transactions show biochar credits clearing above $200 per ton of CO2 removed, though conservative models assume $135/ton. At this price point, a mid-sized ethanol plant producing 19,000 tons of biochar annually could generate more than $6.8 million per year in carbon removal revenue.
The economics improve further when ethanol producers apply biochar directly to local cornfields, capturing the CO2 benefit within the GREET model. Instead of selling carbon credits externally, producers can drive down their CI scores even further, unlocking higher values under 45Z and California’s Low Carbon Fuel Standard.
Deploying biochar to fields creates agronomic advantages that go well beyond CI reduction. Biochar enhances soil moisture retention, nutrient efficiency and crop yields. When combined with conservation practices such as no-till farming and cover cropping, farmers can dramatically reduce
LEVERAGING GASIFICATION: Cornelius van Tonder, chief technology officer for RegenCorp., is photographed near a gasification system.
PHOTO: REGENCORP
the upstream CI footprint of corn—the single largest contributor to ethanol’s carbon score.
Importantly, these practices are already supported by federal funding. The USDA’s NRCS EQIP 336 program provides up to $1,200 per ton of biochar applied, while farmers adopting regenerative practices can receive an additional $80 per acre. That means the same ton of biochar that generates a carbon removal credit could simultaneously lower ethanol’s CI score and unlock USDA support, multiplying the value proposition.
The timing could not be better. With the Inflation Reduction Act’s 45Z credit taking effect in 2025, producers that can demonstrate low-CI ethanol will secure a competitive advantage. Meanwhile, demand from aviation fuel producers—up against aggressive decarbonization targets under the SAF Grand Challenge—creates downstream pull for low-CI ethanol as a feedstock.
At the same time, corporate buyers seeking credible carbon removal credits are paying record premiums for biochar. This dual demand—low-CI fuel and high-value carbon dioxide removal—positions ethanol producers at the intersection of two rapidly growing markets.
Skeptics may ask: is this technology proven? The answer is yes. Gasification has decades of industrial deployment, and today’s modular systems are financeable, reliable, and tailored for ethanol integration.
Deployment can follow either engineering, procurement and construction (EPC) turnkey models or partnership structures that share both risk and upside with ethanol producers. In either case, downtime is minimized and the technology dovetails with existing plant operations.
What makes this solution compelling isn’t just its emissions impact—it’s the story it tells. Ethanol producers can now market a carbon-negative fuel made from corn stover, with carbon locked back into the same fields it originated from. This is circular,
Decarbonization
regional and verifiable—a powerful narrative for regulators, investors and fuel buyers alike.
The financial case for gasification is also compelling, even under conservative assumptions. If we value biochar carbon removal credits at $135 per ton of CO2, assume a $65-per-ton feedstock cost, credit energy offsets at $0.08 per kilowatt hour for electricity, and account for $5.50 per MMBTU in natural gas savings, the economics quickly add up. Under these inputs, a 20 tph gasification system can generate substantial annual benefits through a combination of avoided energy costs and new revenue from carbon removal, all while driving down ethanol’s carbon intensity score.
With a 100% renewable, on-site energy system plus carbon-negative coproducts, ethanol can shift from a mid-CI commodity to a premium, carbon-smart fuel pathway. The optionality—whether to monetize biochar in external markets or apply it internally for GREET reductions—gives producers the flexibility to adapt as policies and market prices evolve.
Ethanol doesn’t need to wait for futuristic technologies or uncertain policy interpretations. The tools for deep decar-
bonization are here today. Biomass gasification and biochar carbon removal are proven, economic and scalable.
At RegenCorp, we’ve developed turnkey gasification systems for ethanol plants seeking to hit CI 27 and below. Our standard design is modular, financeable and deployable at scale. It includes black-start capability, dual-mode steam and power generation, and a robust biochar capture and handling system. We offer both EPC and partnership models to help producers maximize returns with minimal disruption.
As the low-CI race accelerates, ethanol producers must make smart, capitalefficient choices. Biomass gasification with biochar is the fastest path to CI 27—and the most profitable. It lowers emissions, increases margins and builds goodwill with farmers, regulators and customers.
It’s a rare trifecta in decarbonization: a strategy that benefits the environment, the bottom line and the broader rural economy. For ethanol producers, the time to act is now. It’s time to flip the switch.
Author: Cornelius van Tonder Chief Technology Officer, RegenCorp cornelius@regencorp.co
LOW-CARBON ELECTRICITY: Cornelius van Tonder, left, and Werner Botha, chief projects officer, are pictured near Regen Biofuels' gasification-to-electricity plant in Turkey.
PHOTO: REGENCORP
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