By Jamie Martin
The U.S. biofuel industry is experiencing rising uncertainty due to new tariffs affecting ethanol and other feedstock imports. LanzaJet Inc., a major player in green jet fuel production, now faces rising costs because it planned to use Brazilian ethanol, which is currently more favorable under federal climate guidelines.
Although LanzaJet’s Georgia facility is far from the Midwest corn hub, the company had hoped to import ethanol from Brazil to meet low-carbon fuel tax credit standards. However, recent tariffs on Brazilian imports have made this strategy more expensive.
“If this tariff holds true on ethanol imports, the result is a higher cost SAF product that we are making in the U.S.,” said LanzaJet Chief Executive Officer Jimmy Samartzis. “There is no alternative for a US-produced ethanol that qualifies.”
This situation highlights the broader effects of the trade policies introduced by the current administration, which are disrupting both imports and exports. Retaliatory actions from trading partners and uncertainty about biofuel policies add to the growing concerns.
Another affected area is the production of green diesel. U.S. companies have been relying on used cooking oil (UCO) imports from China. These imports increased significantly in 2024, but questions around fraud led to UCO being banned from qualifying for certain federal tax credits.
This ban, along with tariffs, could benefit U.S. soybean farmers. Fresh soy oil, a domestic biofuel source, may see increased demand as UCO becomes harder to obtain. Soy oil futures have struggled due to competition from UCO but may recover.
Industry leaders are calling for better alignment between biofuel policies and U.S. agriculture to support long-term investment. Ken Zuckerberg of CHS Inc. emphasized this by stating, “It’s a remaking of the ag order.”
Photo Credit: photo-credit-vista-mipan
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