Airlines Show Support for Ethanol Industry

Airlines Show Support for Ethanol Industry

The IL Corn Growers Association (ICGA) commends the airline industry for their support of the U.S. Department of Energy’s Argonne GREET model (GREET) and ethanol production.

The companies joined the ethanol industry in a letter to Treasury Secretary Janet Yellen and asked the agency to include the GREET model when calculating tax credit eligibility for Sustainable Aviation Fuel (SAF) in the Inflation Reduction Act (IRA).

“Argonne GREET allows users to account for climate smart and regenerative feedstock production practices,” said the letter. “The IRA could unleash a new wave of U.S. bio-innovation practices but will not reach its full potential if those practices cannot be accounted for.”

Although no formal guidance has been shared on which feedstocks qualify for the tax credits, the Department of Energy’s Manager of System Development and Integration Program Jim Spaeth said both GREET and the International Civil Aviation Organization (ICAO) model will be used.

“The letter is a boost from the airlines demonstrating their desire to incorporate ethanol into sustainable aviation fuel,” said Fairfield farmer and ICGA President Matt Rush. “Our industry knows GREET is credible and we are excited to see the airlines join us. We can’t do this without them.”

The Short-Term Energy Outlook released by the U.S Department of Energy reports the 2023 ethanol market at 15.4 billion gallons. It is estimated the utilization of corn-based ethanol for SAF would increase ethanol demand to nearly 17 billion gallons by 2030.

The Department of Treasury is expected to release their decision on qualifying models in December.

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