Biochar, Biomass and Bottom Lines

As U.S. ethanol producers prepare for the implementation of 45Z, one thing is clear: carbon intensity (CI) is no longer just a regulatory metric—it’s a revenue driver. Achieving CI scores below 30 grams of CO2 equivalent per megajoule (gCO2e/MJ) has become the new standard for accessing premium markets, complying with evolving policies and maximizing federal incentives. Yet many producers still hover between 65 and 80 gCO2e/MJ, largely because of their reliance on fossil-based heat and power.

A transformative solution exists, and it’s available now: integrating on-site biomass gasification systems to replace fossil fuels with renewable heat and power, while monetizing biochar as a carbon removal credit. This dual-impact approach not only cuts CI scores by more than 50%, but also creates new revenue streams, stabilizes energy costs and delivers a powerful, closed-loop sustainability narrative that benefits growers and fuel producers alike.

Modern ethanol plants are heat-intensive facilities, consuming vast quantities of natural gas for steam generation and significant grid electricity for operations. Energy inputs typically account for a substantial portion of operating expenses and are a primary contributor to high CI scores.