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Green Plains Announces 100% of Rights of Way Acquired on ‘Advantage Nebraska' Carbon Capture Project with Lateral Construction Underway

1. Green Plains' carbon strategy milestones are on track for 2025 operation. 2. The company aims for significant low carbon ethanol production using carbon capture. 3. New GREET model allows 32-point reduction in corn ethanol's CI score. 4. Advantage Nebraska project is expected to capture 800,000 tons of CO2 annually. 5. Low carbon feedstocks position GPRE for better earnings and federal tax benefits.

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FAQ

Why Bullish?

The advancements in carbon capture align with increasing demand for low carbon fuels, similar to how past projects in renewable energy sectors rallied stock prices. Additionally, participation in the 45Z credit could enhance market competitiveness and profitability.

How important is it?

This article highlights essential developments directly influencing GPRE's operations and market position, significantly impacting its future valuation.

Why Long Term?

The strategic developments and ongoing construction for the Advantage Nebraska project are positioned for future gains over several quarters, indicating enduring value increases, similar to past initiatives in clean energy.

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SPYTSLAMETA
OMAHA, Neb.--(BUSINESS WIRE)--Green Plains Inc. (NASDAQ:GPRE) today announced that key milestones for the ‘Advantage Nebraska’ carbon strategy have been met and the project remains on track for operation in the second half of 2025. These facilities are expected to be among the first significant volumes of low carbon ethanol from carbon capture and sequestration in the U.S. and positions the company to participate in the early days of the 45Z Clean Fuel Production Credit, the details of which were recently revealed. “We are very pleased with the progress that Tallgrass has made on the Trailblazer CCS project,” said Todd Becker, president and chief executive officer at Green Plains. “Tallgrass has secured all the rights of way for the laterals to connect our Nebraska plants, and all Class VI sequestration well permits have been issued, allowing us to stay firmly on schedule. Construction of the compression infrastructure is planned to begin in February, with the delivery of the compression equipment anticipated for the second quarter. With Tallgrass commencing construction of the laterals in 2024, we remain on schedule to permanently sequester 800,000 tons of biogenic carbon dioxide each year from our Central City, Wood River and York, Nebraska locations beginning in the second half of the year. The compression equipment is designed to scale to accommodate the potential for increased production and post-combustion carbon capture, with overall carbon capture capacity up to 1.2 million tons per year.” The recently released 45Z GREET model allows U.S. corn ethanol to reduce its CI score by approximately 32 points with carbon capture and sequestration. Additionally based on preliminary analysis of the model: Indirect Land Use Change (ILUC) penalties for corn were further reduced, resulting in a lower starting CI for U.S. corn ethanol relative to prior GREET models A transportation penalty is assessed on imported Used Cooking Oil (UCO) relative to domestic UCO, and imported UCO is prohibited from claiming the 45Z credit if used to make on-road fuels such as biodiesel or renewable diesel Using Renewable Corn Oil (DCO) as a feedstock to produce renewable diesel would result in an approximately 25 point CI advantage for the finished fuel relative to using soybean oil as the feedstock “Our carbon capture strategy continues to gain momentum, and we are now even closer to being operational across our 287 million gallon Nebraska footprint,” added Todd Becker. “We also believe the value of this is not reflected in our current share price as this project has the ability to create significant earnings and value creation opportunities for our shareholders by producing some of the lowest carbon intensity fuel in the world. With the recently released guidance on 45Z, we are more confident than ever that our ‘Advantage Nebraska’ strategy is the right course of action, and believe we are uniquely situated to benefit from our ability to sequester the biogenic carbon dioxide and reduce the CI of our ethanol by more than half.” “Based on the most recent GREET model, our Central City facility, for example, has a base CI score of 51, and with carbon capture in place it would be at 19 as a new starting point. In addition, our low-CI corn oil should now be further advantaged relative to other feedstocks. We have positioned ourselves to participate not only in this upside from the Federal tax credits, but also state low carbon fuel markets or private carbon credit markets, as well as being a leading supplier of low carbon feedstocks for use in alcohol to jet SAF as that market develops in the future,” concluded Becker. About Green Plains Inc. Green Plains Inc. (NASDAQ:GPRE) is a leading biorefining company focused on the development and utilization of fermentation, agricultural and biological technologies in the processing of annually renewable crops into sustainable value-added ingredients. This includes the production of cleaner low carbon biofuels and renewable feedstocks for advanced biofuels. Green Plains is an innovative producer of Sequence™ and novel ingredients for animal and aquaculture diets to help satisfy a growing global appetite for sustainable protein. For more information, visit www.gpreinc.com.

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