Today U.S. Department of Energy’s release of the 45ZCF-GREET model marks a significant evolution in evaluating lifecycle greenhouse gas (GHG) emissions for biofuel feedstocks under the 45Z Clean Fuel Production Credit. This Dept of Energy GREET model introduces precise Carbon Intensity (CI) assessments, emphasizing emissions from feedstock production, transportation, and processing. Waste-derived feedstocks such as Used Cooking Oil (UCO), Tallow, and Greases benefit from exceptionally low CI values due to avoided emissions and exemption from Indirect Land Use Change (ILUC)penalties. Conversely, crop-based feedstocks like Soyoil and Canola Oil face higher CI values due to emissions from agricultural activities and ILUC effects. ILUC plays a pivotal role in the 45ZCF-GREET model, significantly impacting feedstocks that require new or expanded cropland. ILUC-related emissions, stemming from land conversion (e.g., deforestation), add a substantial GHG burden to feedstocks like soyoil and perhaps even canola oil, often making them ineligible for credits. In contrast, UCO and other waste-derived feedstocks bypass ILUC penalties, allowing them to achieve higher credit values. Producers using high-CI feedstocks must explore advanced decarbonization strategies, including Climate Smart Agriculture (CSA), renewable energy, carbon capture, and blending with low-CI alternatives, to improve their competitiveness under the new framework. On the positive side, the model also highlights the importance of individual plant configurations and technology. Facilities leveraging renewable electricity, process heat, or carbon capture technologies can significantly lower their CI scores, maximizing credit eligibility. As biofuel producers adapt to this new standard, the updated GREET model not only incentivizes sustainability but also challenges the industry to innovate for a lower-carbon future. The accompanying visualization provides a snapshot of updated credit values for major feedstocks under the 45ZCF-GREET framework.
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