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Treasury, IRS release proposed 45Z regulations

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By Erin Krueger

February 03, 2026

Policy Business Sustainable Aviation Fuels 

The U.S. Department of Treasury and IRS on Feb. 3 released proposed regulations for the 45Z clean fuel production tax credit, as updated by the One Big Beautiful Bill in mid-2025. A public comment period is scheduled to be open for 60 days.

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Valero Energy Corp. on Jan. 29 released fourth quarter 2025 financial results, reporting a profitable three-month period for its ethanol segment and Diamond Green Diesel joint venture, which produces renewable diesel and SAF.

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Arva on Jan. 27 announced the expansion of its biofuels offering to support biofuel producers as they operationalize the 45Z Clean Fuel Production Credit.

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Honeywell on Jan. 28 announced that TruAlt Bioenergy Limited will use Honeywell’s Ethanol-to-Jet (ETJ) process technology to produce 80,000 tons per annum (TPA) of sustainable aviation fuel (SAF) in India.

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The U.K. Department of Transport on Jan. 20 announced plans to offer up to £43 million ($59.53 million) to support green aviation projects, including those focused on clean fuels and zero-emission aircraft.

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The New Mexico Environmental Improvement Board on Jan. 22 unanimously adopted regulations implementing a Clean Transportation Fuel Program, making New Mexico the fourth U.S. state to adopt a clean fuel standard.

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Gevo Inc. has been awarded U.S. Patent No. 12,486,207 B2. The patent broadens protections for different catalyst combinations and explicitly protects the use of ethanol-to-olefins (ETO) technology to produce fuels.

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California Gov. Gavin Newsom on Jan. 9 released a proposed 2026-27 state budget. Details published by the California Senate Committee on Budget and Fiscal Review indicate the proposed budget includes provisions for a new SAF tax credit.

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Washington State leaders, aviation industry partners, research institutions, Tribal representatives and sustainability advocates on Jan. 8 launched the Cascadia Sustainable Aviation Accelerator, an initiative that aims to accelerate SAF deployment.

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Advanced biofuels pioneer Haffner Energy and power-to-energy player IGNIS P2X kicked off their bio/e-SAF collaborative project AeroVerde. The companies are currently identifying the project’s first site’s precise location in Spain.

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The U.S. House of Representatives on Jan. 8 voted 397 to 28 in favor of an appropriations package that includes language on biomass energy and sustainability. Reports accompanying the legislation include guidance on SREs and SAF.

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Biomass Magazine has released the agenda for the 19th Annual International Biomass Conference & Expo, scheduled for March 31-April 2, 2026, at the Gaylord Opryland Resort & Convention Center in Nashville, Tennessee.

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The U.K. Department for Transport late 2025 signaled it may be softening its stance on crop-based SAF. The agency is gathering stakeholder input that could provide a pathway to open the country’s SAF Mandate program to crop-based biofuels.

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LanzaTech Global Inc. on Dec. 22 announced an increase in its holdings of LanzaJet Inc. to 53%. This announcement follows the production of ASTM-certified sustainable fuels at LanzaJet’s Freedom Pines Fuels facility in Soperton, Georgia.

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The U.S. EPA on Dec. 18 released data showing 1.78 billion RINs were generated under the RFS in November, down from 2.05 billion generated during the same month of 2024. Total RIN generation for the first 11 months of 2025 reached 21.11 billion.

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The USGBC recently escorted reporters from weekly Japanese business journals and other influential outlets on a tour of the U.S. biofuel value chain, with a focus on ethanol’s application as a feedstock for SAF through alcohol-to-jet technology.

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In 2025, SAF output is expected to reach 1.9 million metric tons (Mt) (2.4 billion liters), double the 1 Mt produced in 2024, according to the IATA. However, in 2026, SAF production growth is projected to slow down and reach 2.4 Mt.

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Reps. Sharice Davids, D-Kan.; Mike Flood, R-Neb.; Troy Carter, D-La.; and Tracey Mann, R-Kan., on Dec. 9 introduced legislation that aims to reinstate the 45Z clean fuel production credit premium for SAF and extend the 45Z credit through 2033.

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Global energy and commodity price reporting agency Argus has launched the world's first assessed price for U.K. sustainable aviation fuel (SAF) certificates, expanding its coverage of the northwest European SAF market.

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The International Air Transport Association said the EU’s release of the Sustainable Transport Investment Plan as a significant step in recognizing the urgent need to accelerate air transport’s decarbonization, but more action is still needed.

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The U.S. EPA on Nov. 20 released data showing more than 1.98 billion renewable identification numbers (RINs) were generated under the RFS in October, down from 2.17 billion generated during the same month of last year.

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Allied Biofuels FE LLC and Praj Industries Ltd have signed a MOU to develop Central Asia’s largest ethanol production facility in the Khorezm region of Uzbekistan. Ethanol produced at the facility will be used as feedstock for SAF production.

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LanzaJet Inc. on Nov. 13 announced that it has fully operated and produced fuels at its LanzaJet Freedom Pines Fuels facility in Soperton, Georgia. The commercial-scale facility produces SAF via an alcohol-to-jet technology.

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Gevo Inc. could close financing on a proposed 30 MMgy SAF facility under development adjacent to its existing corn ethanol plant in North Dakota as soon as mid-2026, according to comments during a third quarter earnings call.

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Aemetis Inc. released Q3 results on Nov. 6, reporting increased RNG capacity and higher capacity utilization at the company’s California ethanol plant. Aemetis also provided an update of biodiesel, SAF and CCS projects.

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The European Commission on Nov. 5 unveiled its Sustainable Transport Investment Plan, an initiative that aims to rapidly accelerate the energy transition in aviation and marine sectors, including through the use of SAF and marine biofuels.

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LanzaJet Inc. has awarded the front-end engineering and design (FEED) for Project Speedbird to Fluor Corp. The commercial-scale ethanol-to-jet facility in Teesside, U.K., will produce approximately 30 MMgy of sustainable aviation fuel (SAF).

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The European Union Aviation Safety Agency published the first ReFuelEU Aviation Annual Technical Report, laying out the initial picture of how SAF are being supplied, purchased and used across the European Union.

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Rep. Mike Thompson, D-Calif., on Oct. 28 introduced a bill that aims to reinstate many of the renewable energy tax credits eliminated by the One Big Beautiful Bill, including the reinstatement of the 45Z clean fuel production credit “special rate” for SAF.

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The Washington Department of Ecology is working to develop a programmatic environmental impact statement for SAF that will provide a foundation for future project-level environmental reviews. A public comment period is open through Nov. 5.

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