Green Plains to Sell $40M-$50M in Clean Fuel Tax Credits

SECAUCUS, NJ (DTN) – Green Plains has signed an agreement with Freepoint Commodities to sell Clean Fuel Production Credits, or 45Z tax credits, generated in 2025 under the Inflation Reduction Act.

The deal is expected to generate between $40 and $50 million in earnings before interest, taxes, depreciation and amortization, with the first credits being recorded in the third quarter of this year, according to a company statement released Wednesday (9/17).

Initial credits will come from low-carbon intensity ethanol production at Green Plains’ three biorefining facilities in Nebraska.

A portion of the credits will be generated prior to the expected launch of carbon capture later this year, Green Plains CEO Chris Osowski said.

Green Plains has also signed a term sheet with Freepoint to monetize tax credits from three additional facilities expected to qualify under 45Z during 2025, Osowski said.