Green Plains Enters into Agreement with Freepoint Commodities to Monetize 45Z Tax Credits

GPRE expects the sale and transactions contemplated in the term sheet to generate $40 million to $50 million in 2025 EBITDA.

This is one of the first successful agreements to monetize the 45Z credit by a publicly traded company and signals the start of real efforts to monetize the 45Z credits. Unlike many of the other transferable tax credits (e.g., the wind and solar PTCs and ITCs), the section 45Z credit first became available in 2025 and replaced a suite of clean fuel subsidies that ethanol and biodiesel producers have relied on for years. The clean fuel sector—including large and small players—have faced significant uncertainty, unfavorable modeling, and a lack of useful guidance under section 45Z. In response, many have written the 45Z credit off entirely and are not claiming or transferring their 45Z credits.

However, the GPRE transaction shows that there is a market for 45Z Credits and that, despite hurdles, even ethanol producers can successfully monetize their 45Z credits. Combined with increases in the credit amount for certain fuels under the One Big Beautiful Bill Act, we expect a rapid expansion of the 45Z credit market into 2026.

The Vinson & Elkins team representing GPRE was led by partner Jenny Speck with assistance from partner Aaron Prince and associate Hoo Ray.