Tesla seeks to enter the U.S. renewable fuel credit market by using biogas

Tesla Two people familiar with the matter said that the United States is trying to enter the multi-billion-dollar U.S. renewable credit market, hoping to profit from the Biden administration’s progress towards a new zero-emissions goal.

This Electronic car The manufacturer is one of at least eight companies’ applications, and the company is in the process of applying Environmental Protection Agency According to sources, this is closely related to power generation and renewable energy credits.This Environmental Protection Agency Generate a list of pending applications with some detailed information, but do not provide company names.

The addition of Tesla may reshape the renewable credit market established in the mid-2000s to promote investment in the United States. Biofuels industry.By 2020, this market has generated about 18 billion credits, currently mainly Ethanol Producer. Tesla’s application may be related to biogas power generation.

The Biden administration is expected to review the EPA application and list how electric car According to two sources, according to this year’s “Renewable Fuel Standards” (RFS), the United States is eligible for tradable credit lines.

This move may be the largest expansion of the RFS program created by President Bush, with the purpose of boosting rural America and freeing the United States from oil imports.

The participation of Tesla and other electric vehicle manufacturers in the renewable energy program may attract investment in much-needed infrastructure networks, including electric vehicle charging stations.

However, this is likely to anger some people in the U.S. refining industry who need to buy credit lines generated by Tesla and other companies, so-called RINs. Alternative fuel The supplier is essentially providing a subsidy to an electric car company that is trying to shut down a petrochemical refinery.

Rural farmers may think that Tesla’s entry is a priority for Biden’s White House, because electric vehicles are prioritized over biofuels in response to the climate crisis.

Biogas logistics

In 2016, just before the Obama administration left office, the US Environmental Protection Agency issued a proposal to solicit opinions on how to best build renewable energy credits for transportation fuels.

The proposal has been dormant during the Trump administration, and the Trump administration has spent most of its time on fuel credit, trying to find common ground among competitors in the corn and oil industries.

Biogas power generation (mainly electricity extracted from landfills in the country) already meets the credits generated by the RFS program, but the EPA has never approved an application to do so because the agency has not yet figured out the logistical issues.

The key issues include how to trace the biogas that meets the credit conditions, from its origin to the battery of the car, and who in the supply chain should be allowed to request a generous credit.

According to RFS, refineries must blend biofuels, such as corn-based Ethanol becomes their fuel Collecting or purchasing compliant credits in the credit market has caused sharp price fluctuations in recent years.

The plan helped promote investment in ethanol plants in states such as Iowa and Nebraska, but liquid fuels have been under attack by the Biden administration.

Tesla will produce the most profitable type of credit, D3, whose transaction price is much higher than the large amount of traditional ethanol credits.

In addition to manufacturing electric cars, Tesla also invests in charging stations and large batteries.

Related videos:

Source link

Leave a Reply

Your email address will not be published. Required fields are marked *