
Englewood, Colo. – Gevo, Inc. (NASDAQ: GEVO) has embraced the recent Treasury Department’s updated Argonne National Laboratory GREET model, which will be utilized for lifecycle greenhouse gas emissions calculations under the Inflation Reduction Act’s (IRA) Section 40B sustainable aviation fuel (SAF) tax credits. This model recognizes the carbon abatement from climate-smart agriculture and carbon capture and storage (CCS), aligning perfectly with Gevo’s business strategies.
“Today’s guidance reinforces the importance of climate-smart agriculture and other decarbonization methods like carbon capture and storage (CCS) – core tenets of Gevo’s business model for sustainable aviation fuel and other products,” said Dr. Patrick R. Gruber, CEO of Gevo. “Our cutting-edge programs source sustainable feedstocks produced using a variety of climate-smart agricultural practices, and our Verity carbon accounting tool allows farmers to incorporate and track emissions reduction practices tailored to their individual fields. We look forward to sharing key insights from anonymized data to inform the Administration’s upcoming 45Z SAF tax credit guidance – and we will continue to advocate for science-based policies that support CCS and provide new markets for farmers focused on carbon abatement from agricultural activities.”
For nearly two decades, Gevo has been at the forefront of research and development in low-carbon fuels, striving to decarbonize transportation and other industries. Gevo has championed the GREET model for its scientific rigor in determining the lifecycle carbon intensity of SAF. This ensures emissions reductions from all stages of the SAF supply chain, including contributions from climate-smart agriculture and CCS, are accurately credited.
“Today’s guidance reinforces the importance of climate-smart agriculture and other decarbonization methods like carbon capture and storage (CCS) – core tenets of Gevo’s business model,” said Dr. Patrick R. Gruber, CEO of Gevo.
Gevo’s subsidiary, Verity, uses distributed ledger technology to enable precise tracking and reporting of on-farm emission reduction efforts. This collaboration with farmers identifies field-level emissions reduction opportunities, fostering a cooperative approach to achieving significant carbon abatements.
Dr. Gruber added, “Today, the Administration’s actions recognize the power of agriculture and lay the groundwork for implementation of future SAF tax credits. A science-based approach to the Section 45Z credit will ensure that biofuel producers, supported by American farmers, play a vital role in scaling the hard-to-decarbonize aviation industry.”
Gevo has consistently advocated for the inclusion of the GREET lifecycle analysis method under the IRA Section 40B tax credit, emphasizing its precision in measuring the carbon intensity of SAF. The updated model underscores the importance of reducing carbon emissions throughout the value chain, enhancing Gevo’s position in the market.
With the completion of the Argonne GREET 40B SAF tax credit model, Gevo anticipates that the Administration will further emphasize climate-smart agricultural practices and provide flexibility in implementing the IRA Section 45Z SAF tax credit. Clear guidelines for the 45Z Clean Fuel Production tax credit, effective from 2025 through 2027, will be essential for meeting carbon abatement goals and ensuring successful planning for farmers.
Gevo is ready to engage in further discussions with the Administration to advocate for science-based carbon accounting methods.