Absolute Energy LLC. Advancing Markets for Producers/45Z Program

Stay up to date: In case you were not able to make one of our 45Z meetings held during the week of April 7th, below is a recording to help you understand current guidlines.




What is 45Z?

On January 1, 2025, the 45Z Clean Fuel Production Credit took effect, offering tax incentives to produce transportation fuels in the United States. This program specifically rewards fuels produced using low-carbon methods, encouraging more sustainable energy solutions via income tax credit issued to ethanol plants.


What is Carbon Intensity (CI)?

CI is a metric that ethanol has been using for years to claim credits & premiums for producing domestic, renewable fuel. The lower your CI score is, the better.  Field location, yield, nitrogen management, cover crops, and tillage are the primary management practices influencing corn CI scores.


How do I lower my Carbon Intensity (CI) score?

Below are six general practices that a grower can choose from to lower your CI score based on current regulations. Farmers are in control of which practices they choose to participate in to maximize their profit on a field basis level.

  • Reduced Tillage
    • Current Regulations: Total of all STIR values from equipment used from harvest of previous year up until harvest of current year must not go over 80.
    • What You Can Do: For those growers coming from soybeans into corn, by not using various forms of rippers or deep till implements, you have the ability to meet this classification.
    • Herbicide considerations: When selecting herbicides, ensure they will not have carry over that could force an additional pass of tillage.
    • List of STIR Values: Chisel plow (70), Disk ripper (67), Vertical till (45), Soil finisher (39), In-line ripper (36), Field cultivator (28), High speed disk (21), NH3 (6), Planter (3), Side dress (2). For further help on calculating STIR values, please contact us for a more refined value.
    • CI Score: This will lower your CI score by roughly 1.5 points. CI score’s are county dependent, please contact us for a more refined value.
  • No-Till / Strip till
    • Current Regulations: Total of all STIR values from equipment used from harvest of previous year up until harvest of current year must not go over 20. Full-width soil disturbance must not be performed.
    • What You Can Do: By doing basic Strip Till operations, your total STIR score will come in under 20.
    • Herbicide considerations: When selecting herbicides, ensure they will not have carry over that could force an additional pass of tillage.
    • List of STIR Values: NH3 (6), Strip Till (6), Strip Freshener (5), Planter (3), Side dress (2). For further help on calculating STIR values, please contact us for a more refined value.
    • CI Score: This will lower your CI score by roughly 8.5 points. CI score’s are county dependent, please contact us for a more refined value.
  • No Fall Application of Synthetic Nitrogen
    • Current Regulations: The first synthetic N application must occur within 30 days prior to or at the time of planting.
    • Stackability: No fall application of synthetic Nitrogen can not be stacked with cover crops.
    • CI Score: This will lower your CI score by roughly 1.5 points. CI score’s are county dependent, please contact us for a more refined value.
  • Split In-Season Application of Synthetic Nitrogen
    • Current Regulations: Producer must apply at least 75% of total crop synthetic N needs after crop emergence.
    • Stackability: Split in-season application can not be stacked with inhibitors.
    • CI Score: This will lower your CI score by roughly 3 points. CI score’s are county dependent, please contact us for a more refined value.
  • Nitrification inhibitors
    • Current Regulations: Use of nitrification inhibitors on 100% of synthetic Nitrogen applied in the crop year. Inhibitors must also be defined by the Association of American Plant Food Control Officials (AAPFCO) to be eligible.
    • What You Can Do: Be aware of your current Nitrogen program and the opportunity to combine them with inhibitors. The active ingredients listed below can be tied back to the inhibitor product name you are utilizing.
    • List of Accepted Inhibitors: DMPSA, Pronitridine, Ammonium Thiosulfate, Cyanamide, Dicyandiamide and Nitrapyrin.
    • Stackability: Inhibitors can not be stacked with split-in season application.
    • CI Score: This will lower your CI score by roughly 1.5 points. CI score’s are county dependent, please contact us for a more refined value.
  • Cover Crops
    • Current Regulations: Cover crops must be seeded in the fall and species selection, rates, dates, depths, methods must be consistent with applicable soil and site conditions. They must also be terminated via winter kill, herbicide, or non-soil disturbing mechanical methods. Cover crops can not be mechanically harvested or grazed.
    • Herbicide Considerations: When selecting herbicides, ensure they will not have residual that could affect your cover crop establishment.
    • Stackability: Cover crops can not be stacked with no fall application of synthetic Nitrogen.
    • CI Score: This will lower your CI score by roughly 5.5 points. CI score’s are county dependent, please contact us for a more refined value.

What is needed to qualify for 45Z grain production?

Collect Field level data including dates, tillage practices, yield, acres and nutrient management by an approved data collection firm to formulate a CI score. Click here for further technical guidance.

Current programs offered by companies that required carbon sequestration on your acres for payment don’t qualify for 45Z program.


Outlook

45Z and biofuel credits have bipartisan and executive support. We are still awaiting final guidance on the program and scoring; we remain optimistic that the current administration will move forward with it.


Contact us about our CI origination program. 

Tony Niess
Climate Smart Origination Coordinator
Cell: 641-220-2281 | Ph: 641-326-2605
Email: tony.niess@absenergy.org