Green Plains Inc. announced it has entered into an agreement with an affiliate of Freepoint Commodities LLC to sell Clean Fuel Production Credits, or 45Z tax credits, generated in 2025. These initial credits will be derived from low-carbon intensity ethanol production at Green Plains’ three Nebraska facilities.
The company has also signed a term sheet with Freepoint to monetize tax credits from three additional facilities expected to qualify under 45Z during 2025. This agreement highlights the competitive carbon intensity profile of Green Plains' current operations, with a portion of credits generated even before the full launch of carbon capture systems.
This agreement and term sheet are expected to generate between $40 million and $50 million in 2025 45Z EBITDA, net of discounts and applicable operating expenses, with the first credits to be recorded in the third quarter. This transaction marks a milestone in the transferable tax credit market and establishes a foundation for a multiyear relationship, providing significant value to stakeholders.
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