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

Vinson & Elkins represented Green Plains Renewable Energy (GPRE) in the sale of 2025 45Z credits generated from several of its ethanol facilities and the negotiation of a term sheet for an additional tranche of 2025 45Z Credits.

This marks 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.

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The clean fuel sector—including large and small players—has 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, there is potential for a rapid expansion of the 45Z credit market into 2026.

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

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