Donald Trump has officially extended by two years the tax credit for clean fuel production (Section 45Z of the Clean Fuel Production Tax Credit), which was originally set to expire at the end of 2027. This federal measure aims to support the production of Renewable Natural Gas (RNG) primarily derived from the anaerobic digestion of agricultural organic materials, such as animal manure and cellulosic biomass.
A favourable framework for the agricultural sector
This extension is part of legislation entitled “One Big, Beautiful Bill,” signed by the US President on Independence Day, according to a statement from the American company Roeslein Renewables published on July 7 by PRNewswire. The legislative measure aims to revitalise rural economies, enhance US energy security, and diversify income sources for agricultural operations through energy recovery.
Raw materials covered by this legislation include pig, cattle, poultry manure, and plant residues such as cereal rye, perennial native prairie crops, and winter cover crops. According to Bryan Sievers, Director of Government Relations at Roeslein Renewables, “the law will accelerate investments in the anaerobic digestion sector using biomass on American agricultural operations.”
Horizon II demonstration project
The company Roeslein Renewables highlighted the Horizon II project, carried out in collaboration with Sievers Family Farms. Located on a 728-hectare farm dedicated to corn and soybean cultivation with a cattle herd of 2,400 head, this commercial project uses anaerobic digestion to produce renewable natural gas from biomass and animal manure.
According to estimates published in an RNG White Paper, the production potential from this method could cover up to 17% of the US national demand for natural gas. The Horizon II project is certified compliant with the European Directive RED II (Directive [EU] 2018/2001) and the International Sustainability and Carbon Certification (ISCC EU) standard.
Academic partnerships and economic outlook
Roeslein Renewables is also working in partnership with Penn State University and Iowa State University on projects funded by the United States Department of Agriculture (USDA). These partnerships particularly aim to document the environmental benefits associated with renewable natural gas production, such as reductions in nitrogen and phosphorus runoff and improvements in soil and water quality.
The founder and chairman of Roeslein Renewables, Rudi Roeslein, explains that “the main objective is to offer farmers an economically viable alternative for cultivating their most erosion-sensitive land.”
