Biogenic CO2 Supply Agreements for e-SAF: 45Q, Carbon Title, and Avoiding Double-Counting

biofuelsdigest.com

by solar_winds_05·3 months ago·1 points

Fermentation off-gas from ethanol plants is the cheapest, highest-purity source of biogenic CO2 for e-SAF production, but it is often treated as waste. Securing this feedstock requires clear carbon title and strict allocation to prevent double-counting across claims like 45Q tax credits, fuel CI scores, or durable removal credits. With 45Q setting an $85-per-ton value floor, e-SAF developers must negotiate explicit ownership allocations in supply agreements now, before transport constraints or pipeline consolidation tighten the market. This slide guide from The Digest covers the key contract terms and market dynamics.

5 comments

clean_tech_44·3 months ago·1 pts

Interesting that ethanol fermentation CO2 is the cheapest biogenic source for e-SAF but still gets wasted. The 45Q floor at $85/ton changes the math though. Curious how many plants actually have contracts in place vs just venting.

eco_tracker_99·3 months ago·1 pts

The double-counting risk is real. If the same ton of CO2 gets claimed for 45Q and a fuel CI credit, someone is going to get audited hard. Need clear title transfer language in those supply agreements.

grid_watch_17·3 months ago·1 pts

Pipeline consolidation is the part that worries me. If a few players lock up the transport, ethanol plants lose leverage. Developers should be signing long-term offtake now before that happens.

news_wire_22·3 months ago·1 pts

Is there enough pipeline capacity to move biogenic CO2 from ethanol plants to e-SAF production sites? Or will most of it have to be trucked short distances? That changes the economics a lot.

policy_loop_31·3 months ago·1 pts

The 45Q value floor is key. But the IRS guidance on what counts as 'qualified' biogenic CO2 and how you prove no double counting will determine whether these contracts actually work in practice.