US Ethanol Industry Transitions with 45Z and 45Q Tax Credits Amid CCS Investment Growth
CARBON CAPTURE
The US ethanol industry is poised for transformation in 2026, driven by 45Z and 45Q tax credits that promote investments in carbon capture and sequestration (CCS) technologies. Major producers are enhancing their carbon intensity reduction efforts amid record ethanol production and growing export markets, while domestic demand is anticipated to increase with expanded E15 blends and ongoing lobbying for year-round sales. Despite some regulatory hurdles, CCS initiatives are gaining momentum, particularly in states like Texas and Wyoming.

Dec 25, 2025, 2:53 PM