Green Plains Inc. (NASDAQ:GPRE) has announced a significant agreement with an affiliate of Freepoint Commodities LLC to sell clean fuel production credits, also known as 45Z tax credits, generated in 2025 under the Inflation Reduction Act. The initial credits will be generated from low-carbon intensity ethanol production at Green Plains’ three Nebraska facilities, with a portion of these credits being generated prior to the expected launch of carbon capture later this year.
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, reflecting the company's long-term strategy to monetize the value it’s creating through low-carbon intensity production.
The agreement covers the anticipated 2025 production year credits for the three Nebraska facilities, with the potential to extend the agreement to purchase 45Z credits for 2026-2029. It is expected to generate between $40 and $50 million in 2025 45Z EBITDA net of discounts and after applicable operating expenses, with the first credits being recorded in the third quarter.
Green Plains Inc., a leading biorefining company, is actively deploying carbon capture and storage (CCS) solutions, with three of its facilities set to begin carbon capture later this year. The company's focus on operational excellence has improved utilization and yields across its platform, while also lowering carbon intensity, enabling several plants to qualify for 45Z credits during the current year. The market has reacted to these announcements by moving the company's shares -6.88% to a price of $9.61. Check out the company's full 8-K submission here.
