Iowa Corn Farmers and Biofuels Producers Missing Out on Massive New Market Until Carbon Sequestration Projects Move Forward
Sustainable aviation fuel (SAF) could grow into the largest new market ever seen for U.S. farm commodities thanks to the start of production of SAF at LanzaJet Freedom Pines Fuels. Without low carbon ethanol, which requires carbon capture and sequestration (CCS), Iowa farmers could miss out on the chance to unlock this new market. No Iowa ethanol plant currently has a carbon intensity score low enough to qualify as a SAF feedstock. Only one plant in the U.S., using CCS, is currently producing SAF-friendly ethanol. By contrast, Brazil produces over 7 billion gallons of ethanol with a carbon score expected to qualify for SAF production.
“Today and every day going forward, American farmers and ethanol producers are losing demand until we get carbon capture and sequestration online,” stated Monte Shaw, Iowa Renewable Fuels Association executive director, who was in Georgia today to witness the LanzaJet grand opening. “LanzaJet is proving that SAF from ethanol is here today. Now it is up to us to produce a qualifying ethanol feedstock. Iowans need to realize that CCS is the key to the new market. Regardless of individual views on carbon policy, our business is making the products our customers want and right now we can’t do that.”
“LanzaJet Freedom Pines Fuels will use a variety of low carbon sustainable ethanol, making this an eye-opening experience to what Iowa corn farmers could expect to be a part of,” said Dan Keitzer, a farmer and Iowa Corn Usage and Production Committee Chair. “However, due to our inability to lower our CI score for ethanol plants here in the state, we will be missing out on a large market for the corn we produce, which is unsettling as we have had larger carryout numbers in recent years.”