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Biden administration's initial SAF aid design to raise climate difficulty for ethanol

The Biden administration will launch a preliminary environment design for its sustainable air travel fuel (SAF) aid program in the coming weeks that is more limiting than the cornbased ethanol manufacturers had hoped, two sources knowledgeable about the matter informed .

Under the preliminary design, which might be released by May 15, ethanol is not expected to automatically certify as a. feedstock in the SAF subsidy program unless the corn involved is. sourced from farmers using among simply three sustainable. farming techniques, the sources stated.

Those methods consist of efficient tilling, use of cover. crops, and effective fertilizer application, the sources stated.

The ethanol industry had actually anticipated a wider variety of. agriculture techniques to be consisted of in the design to assist the. fuel certify.

The sources stated the design might be expanded to consist of a. more comprehensive series of options when the administration releases its. final rule later in the year.

The Biden administration desires SAF to play a key function in. decarbonizing the transportation sector, and included a $1.25. per gallon tax credit for its production in the 2022 Inflation. Decrease Act.

But to protect that aid, SAF manufacturers should demonstrate. their fuel is 50% lower in emissions than jet fuel.

Ethanol producers see the nascent SAF market and its. subsidies as the corn-based fuel's leading chance for market development,. in the middle of stagnant demand for gas.

(source: Reuters)