Don’t trust the co-process

Source: BY MATTHEW CHOI AND JOSH SIEGEL, Politico • Posted: Sunday, December 12, 2021

Biofuels proponents and fuel marketers want more information from Congress on a proposed tax credit for sustainable aviation fuel. In a letter Thursday, the groups asked congressional leaders to exclude fuels made by co-processing biomass with petroleum at oil refineries from the credit, arguing such a move would ensure a level playing field for emerging technologies. The letter was signed by biofuels advocates Growth Energy and the National Biodiesel Board as well as fuel groups NATSO and SIGMA.

Recall: The House-passed reconciliation package includes a refundable SAF tax credit that would begin at $1.25 per gallon and go up to $1.75 for blenders that supply fuel with an at least 50 percent life cycle estimate reduction in greenhouse gas emissions in comparison with petroleum-based jet fuel. The bill also includes an extension of incentives for biodiesel, renewable diesel and alternative fuels, and the groups that wrote the letter note that co-processed fuel is already excluded from eligibility for the current biodiesel and renewable diesel blenders’ tax credit.