MN Bio-Fuels Commends State Leadership for Supporting Agriculture's Role in Reducing Emissions in the Aviation Industry

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August 28, 2023

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(Minnesota Bio-Fuels Association) The Minnesota Bio-Fuels Association (MN Bio-Fuels) commends Minnesota Department of Agriculture Commissioner Thom Petersen for his leadership advocating for the participation of agriculture and biofuel producers in decarbonizing the aviation sector in a recent letter to U.S. Secretary of Agriculture Tom Vilsack.

In the letter, Thom Petersen, Commissioner of the Minnesota Department of Agriculture, thanked the Secretary for his ongoing support of agriculture and recommended policymakers implement guidance that facilitates the industry’s participation in new markets, including sustainable aviation fuel (SAF).

“Minnesota Bio-Fuels Association is grateful for Commissioner Petersen and Secretary Vilsack’s efforts to ensure Minnesota farmers and ethanol producers can continue contributing towards the decarbonization of our transportation sector,” said MN Bio-Fuels Executive Director Brian Werner. “We urge regulators in Washington to adopt SAF tax credit guidance that supports Minnesotan farmers and biofuels.”

The U.S. Department of the Treasury is deciding which additional carbon accounting model can be used for determining eligibility for SAF tax credits passed in the Inflation Reduction Act. The Commissioner makes clear that adopting the U.S. Department of Energy’s Argonne GREET model would be an appropriate choice, given its use by the Treasury Department for non-aviation fuel tax credits, and ability to incorporate updated science and data from federal agencies.

The forthcoming decision by the Biden Administration regarding the method and model used to measure carbon intensity holds significant implications for American farmers. “The key question remains whether U.S. sustainable aviation fuel producers will be allowed to use a lifecycle greenhouse gas (GHG) emissions accounting methodology based on the well-established Argonne GREET model developed by the U.S. Department of Energy, which is used with standards for other biofuels, or whether producers can only use a policy framework approved by an international body (ICAO) under the CORSIA program. The GREET methodology is tailored to U.S. circumstances and would permit some row crops to be utilized for SAF under both the 40B and 45Z tax credits, whereas the CORSIA methodology would deter their use,” Petersen writes.

Furthermore, Commissioner Petersen emphasizes Minnesota's commitment to the Biden Administration's SAF Grand Challenge, aiming to produce 3 billion gallons of sustainable aviation fuel by 2030: “Expanding SAF production not only creates jobs in Minnesota farming communities, but also in construction and equipment design for cutting-edge biorefineries, biorefineries and infrastructure operations, and scientific research on bioenergy and biofuels. But we cannot contribute to the SAF Grand Challenge if regulatory policies restrict the use of crop-based biofuels and disincentivize participation from farmers by adopting a less dynamic carbon intensity model.”

As the third-largest producer of corn and the fifth-largest producer of ethanol in the U.S., Minnesota is committed to constantly innovating to improve yields, find new markets, and support American energy security. READ MORE

MN Ag Commissioner Supports Biofuels in Aviation (Energy.AgWired.com)

Letters to the Editor: US Agriculture Is the Future of Cleaner Flight and Minnesota Is Ready to Take the Lead (DTN Progressive Farmer)

Governor Walz highlights efforts to grow sustainable aviation fuels industry using Minnesota’s crop biofuels (Post Online Media)

WALZ SEES MINNESOTA BECOMING GLOBAL SUSTAINABLE AVIATION FUEL LEADER (Brownfield Ag News)

Excerpt from Post Online Media: This year, the Governor signed a nation leading sustainable aviation fuel tax credit into law. The new tax credit, combined with new federal tax breaks, will help grow the emerging sustainable aviation fuel industry in Minnesota.

"From soil health to regenerative farming practices, innovation is core to the ethos of American agriculture, and it’s at the heart of who we are in Minnesota, " the Governor’s letter said.

"It’s no surprise that American agriculture is ready to innovate when it comes to fueling our aviation industry. And with electrification still far away as an opportunity to decarbonize air travel, we’re looking at sustainable aviation fuel as a solution to powering the airline industry.

"The Biden Administration has set several ambitious goals for decarbonization – including a target of net-zero carbon emissions for the transportation sector by 2050 and a goal of 3 billion gallons of sustainable aviation fuel (SAF) by 2030.

"Stakeholders in the aviation sector have begun to announce SAF goals and agreements. In 2022, DHL Express announced that BP and Neste deals would provide SAF from both suppliers until 2026; Delta Airlines, Hawaiian Airlines and American Airlines announced purchase agreements for SAF from Gevo, Inc. this year and last; and Boeing just doubled SAF purchases for commercial operations this year.

"But there is more to be done to reach these goals, which means more opportunities to tap into the crop-based biofuels sector.

"What is abundantly clear is that we will not achieve the Biden Administration’s goals without the contributions of American crop-based biofuels.

"In Minnesota, we understand the urgency to address climate change, have the problem-solving spirit to tackle these problems, and are home to thousands of farmers and workers ready to meet the needs of a growing SAF industry.

"In the SAF Grand Challenge Roadmap , the Biden Administration set a goal of 3 billion gallons of SAF produced by 2030. With only seven years to go, time is of the essence for making progress on these important decarbonization targets.

"In Minnesota, we embrace this sense of urgency. Sustainability and ingenuity are core priorities for so many farms here in Minnesota. Take Shawn Feikema’s family farm in southwest Minnesota.

"Shawn uses cattle manure to fertilize his fields without the use of synthetic fertilizers, corn stovers to enrich the soil, and strip-tills his fields to reduce waste. Farmers like Shawn are using various sustainable agricultural practices to limit carbon emissions.

"And as Governor of Minnesota, I know we have what it takes to lead in creating sustainable aviation fuels.

"As the third-largest producer of corn in the U.S. with over 8 million acres planted and $1.78 billion value of corn exported, Minnesota boasts more than 24,000 farmers ready to contribute to this growing industry.

"Thanks to outstanding opportunities at the University of Minnesota, we also have the research capabilities to innovate and advance the industry.

"To attract more investment in SAF, this year we created a nation-leading sustainable aviation fuel tax credit. The new refundable tax credit provides $1.50 per gallon of sustainable aviation fuel produced or blended in Minnesota and sold for use in planes departing Minnesota airports.

"This tax credit, combined with new federal tax breaks, will help grow this emerging industry right here in Minnesota. We have also added a construction materials sales tax exemption for the next three years to further incentivize the location of these new facilities in Minnesota.

"Crop-based biofuels are an obvious solution when it comes to making one of our biggest carbon footprints, the airline industry, more sustainable. With smaller greenhouse gas footprints than fossil fuels, crop-based biofuels can be the building blocks that help us meet our national net-zero goals.

"In fact, the Intergovernmental Panel on Climate Change several years ago determined that biofuels can help lead to the reduction of emissions required in energy-intensive industries to limit warming by 1.5 o C.

"SAF that leverages crop-based feedstocks is a win-win in reducing our carbon footprint while supporting rural communities and creating good-paying jobs across the United States.

"In addition to boosting feedstock production, expanding SAF production would create job opportunities in construction and equipment design for cutting-edge biorefineries, manufacturing for operating SAF biorefineries and infrastructure, and scientific research on bioenergy and biofuels.

"As Secretary of Agriculture Tom Vilsack and federal leaders work to move these ambitious decarbonization goals forward, they cannot lose sight of the opportunity to leverage American agriculture to scale up our SAF industry, advance sustainability, and support rural communities nationwide with the help of crop-based biofuels.

"In Minnesota, we have the resources, research capacity, and expertise to position our state on the leading edge of the SAF industry and ensure our biofuels industry is strong for generations to come. Because this industry is good for farmers, our climate, and the economy and Minnesota is seizing the opportunity," the Governor said. READ MORE