A coalition of environmental groups is working to prevent U.S. wood pellet producers from accessing the 48C Qualifying Advanced Energy Project Credit, a tax credit that aims to strengthen U.S. industrial competitiveness and clean energy supply chains.&nbsp;The 48C program was established by the American Recovery and Reinvestment Act of 2009 and expanded with a $10 billion investment under the Inflation Reduction Act of 2022, according to the U.S. Department of Energy.&nbsp;Manufacturers and other entities that invest in qualifying advanced energy projects are able to apply for the 48C tax credit through the DOE. The tax credit equals 30 percent of qualified investments costs for projects that meet prevailing wage and apprenticeship requirements and 6 percent for projects that don’t meet prevailing wage and apprenticeship requirements.&nbsp;Qualifying projects are those that re-equips, expands or establishes an industrial or manufacturing facility to produce or recycle specified advanced energy property; installs technology in an industrial or manufacturing facility to reduce greenhouse gas (GHG) emissions by at least 20 percent; or re-equips, expands or establishes an industrial facility to process, refine or recycle critical materials.&nbsp;The U.S. Department of Treasury and Internal Revenue Service, in partnership with DOE, earlier this year <a href="https://www.energy.gov/infrastructure/qualifying-advanced-energy-project-credit-48c-program">announced </a>up to $4 billion in a first round of the 48C tax credit. Concept papers were due Aug. 3.&nbsp;Enviva is among the companies pursuing the tax credit. During a second quarter earnings call held Aug. 3, Enviva Chief Financial Officer Shai Even confirmed the company has applied for the 48C tax credit in relation to the company’s wood pellet plants under development in Epes, Alabama, and Bond, Mississippi. The Epes plant is under construction and expected to be operational in mid-2024. Enviva is working to finalize an EPC contract for the Bond facility with an expected in-service date in 2026, according to comments made by company officials during the Q2 earnings call. If the company’s efforts to secure the 48C tax credit are successful, Even said the company could be awarded a credit that can be monetized for a value ranging from 6 percent to 30 percent of the total eligible capital investment cost of each project.&nbsp;The coalition of environmental groups on Sept. 27 sent a letter to Energy Secretary Jennifer Granholm urging the Biden administration to prevent Enviva and other wood pellet producers from accessing the benefits of the 48C tax credit. Within the letter, the groups make the often-debunked claim that biomass energy is more carbon intensive than fossil-based energy sources. A full copy of the letter is available on the Friends of the Earth <a href="https://foe.org/news/doe-48-tax-credit/">website</a>.&nbsp;&nbsp;

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A coalition of environmental groups is working to prevent wood pellet producers from accessing the 48C Qualifying Advanced Energy Project Credit, a tax credit that aims to strengthen U.S. industrial competitiveness and clean energy supply chains. 

Environmental groups ask DOE to block wood pellet producers from accessing 48C tax credit

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