One place where a new era is dawning is a 245-acre oil field just outside tiny Lake Preston in SD. Turning corn into low-carbon jet fuel.
Gevo claims its “farm-to-fly” project releases 80% less carbon dioxide into the atmosphere than ethanol produced in conventional plants. This includes 35 million bushels from nearly 100 contract growers in South Dakota, wind farms that power the plants, a “green” production facility that produces hydrogen from water, and captures carbon dioxide from air emissions. This is achieved by consolidating equipment, permanent disposal, and production capacities. It will produce 65 million gallons per year. The company’s chief executive officer, Patrick R. Gruber, said the reduction in carbon dioxide from making the fuel is so great that Jet can completely offset the carbon dioxide emitted from the engine’s exhaust. increase.
“This will be the cleanest ethanol plant in the world with the lowest carbon footprint,” he said.
None of this would be possible without government support. Virtually all stages of net-zero 1 production, and a significant portion of its revenues, will benefit from tax cuts, subsidies, direct payments to low-carbon has benefited from approximately $20 billion approved for When the plant is scheduled to start production in 2025, it will be eligible for a clean fuel tax credit of $1.75 per gallon, as well as for every tonne of carbon dioxide that is permanently dumped into deep underground caverns. A tax credit of $85 applies.
That’s not all. Congress also directed her $40 billion to the Department of Energy for loan guarantees to fund innovative carbon reduction projects. Gevo expects the department to approve a $620 million loan guarantee to pay for his 70% of Net Zero 1 construction costs.
And in September, the U.S. Department of Agriculture awarded Gevo a $30 million grant that would allow contracted corn growers to adopt “climate-smart” cultivation methods to produce their crops of 25 per bushel. Paid a bonus of ~50 cents. Such practices include not tilling, planting cover crops, reducing the use of commercial fertilizers, and reducing the use of commercial fertilizers, with the aim of retaining carbon in the ground and limiting the runoff of nitrogen and phosphorus fertilizers into rivers. The Gevo project is one of them. The 141 climate smart demonstration projects the USDA announced last year cost $3.1 billion.
“In response to federal tax incentives passed last year, renewable energy producers who are not considering, or have already taken steps to introduce new technology, expand facilities, or build new factories will Not a single one, said Jeff Cooper, president and CEO of the industry group Renewable Fuels Association.
