Carbon Capture Credits - How Taxes May Help Offset the Cost
Ethanol plants are looking at either direct carbon capture or a carbon capture pipeline. How do tax credits help pay for these projects?
In order for an ethanol plant to receive Section 45Z tax credits starting next year, they must reduce their carbon intensity (CI) score below 50 (currently most plants are at least in the 55-60 range). Farmers who provide low CI corn to the plant may help the score, but the biggest bang for the ethanol plant’s buck is carbon capture.
There are essentially two carbon capture technologies:
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