Growth Energy to IRS: Ethanol Plants Ready to Capture More CarbonFri, 31 Jul 2020 09:42:06 CDT
Today, Growth Energy CEO Emily Skor submitted written comments on the Internal Revenue Service’s (IRS) proposed regulations under section 45Q, a performance-based tax credit for carbon capture projects. In her letter, Skor called on the agency to offer credit for carbon dioxide captured for food and beverage purposes, which would promote investment in new carbon capture capabilities and ensure that the food and beverage industry is not forced to tap alternative sources of carbon dioxide.
“The ethanol industry has more than 50 projects that on average capture 99,000 to 153,000 tons of carbon dioxide annually,” wrote Skor. “These facilities both capture qualified carbon oxides or are in the process of financing projects to capture and sequester carbon oxides.”
More projects are on the way, she added, and 45Q can accelerate that progress.
“Including the food and beverage industry as an eligible commercial market for carbon dioxide would help build resilience in this essential supply chain to external shocks, such as a pandemic, by creating an appropriate tax environment that incentivizes the buildout and operation of carbon capture capabilities,” wrote Skor.
Without the credit, however, producers may opt to seek the credit rather than supply carbon dioxide to food and beverage makers, forcing them to rely on non-renewable sources.
“The IRS should recognize that using carbon dioxide from our facilities ensures that additional mined carbon dioxide is not necessary to meet these applications as ethanol’s carbon comes from annual, renewed sources,” noted Skor.
Public comments on the rule are due by August 3.
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