Inflation Reduction Act (IRA) Planning
The 2022 Inflation Reduction Act (IRA) includes billions of dollars in grants, loans, and tax credits to spur financing and deployment of new clean energy projects that cut greenhouse gas (GHG) emissions. The IRA names the Greenhouse Gases, Regulated Emissions, and Energy Use in Transportation (GREET) model as an essential tool in calculating lifecycle GHG emissions, inclusive of emissions through the point of production.
How we help you with Inflation Reduction Act Planning
Life Cycle Associates works with clients through the key sections of the IRA listed in the following table. We work with operators and provide Techno-Economic Analysis (TEA) services that optimize credit options for their unique operation.
Key Sections in the IRA
| IRA Section | Fuels | Baseline Credit & Timeline |
| 40B – Sustainable Aviation Fuel Credit |
Sustainable Aviation Fuel (SAF) |
$1.25/gal SAF to $1.75/gal SAF depending on CI Expires Dec 31, 2024 |
| 45Q – Carbon Capture Credit | Carbon Capture & Storage (CCS) |
Carbon Capture and Storage: $17 for sequestration $12 for EOR or approved utilization Expires Dec 31, 2032 |
| 45V – Clean Hydrogen Production Credit |
Hydrogen (Green & Blue) |
$0.60 CI between 0 and 0.45 $0.20 CI between 0.45 and 1.5 $0.15 CI between 1.5 and 2.5 $0.12 CI between 2.5 and 4.0 $0.00 CI greater than 4.0 Expires Dec 31, 2032 |
| 45Z – Clean Fuel Production Credit |
Ethanol; Biodiesel; Renewable Diesel; Sustainable Aviation Fuel (SAF) |
$1.00 /gal naphtha and diesel $1.25/gal SAF to $1.75/gal SAF depending on CI Expires Dec 31, 2027 |
Life Cycle Associates Webinar on IRA
View our webinar on the Inflation Reduction Act where we dive into detail about different sections of the Act.
Questions
Do you have questions about fuel life cycle analysis or tax credits for your specific business case as it applies to the Inflation Reduction Act?