Investment Tax Credits will support further development of biogas production infrastructure
BURLINGTON, Ontario, August 15, 2022--(BUSINESS WIRE)--The U.S. House of Representatives, last Friday, passed the Inflation Reduction Act of 2022, which provides for historic investment on spending and tax policies to spur the expanded production of clean energy facilities and put the U.S. on a path to 40% emissions reductions by 2030. The legislation extends and improves the existing Investment Tax Credit for investments in infrastructure to produce clean fuels. In response, Andrew Benedek, Chairman and CEO of Anaergia, a leading global producer of renewable natural gas (RNG), issued the following statement in support of the bill:
"The Inflation Reduction Act will do more to reduce greenhouse gas emissions in the United States than any other legislation in this nation’s history. As a business leader with a deep concern for the environment and society’s ability to address the climate crisis, I am profoundly grateful to the elected leaders that passed this act in Congress."
This legislation will accelerate Anaergia’s development and construction of biogas facilities in the U.S. with improved economic returns and enable the development of additional pipeline projects thanks to the economic incentives in this bill.
The Act includes several provisions that will benefit Anaergia’s U.S. facilities in development:
The expanded Investment Tax Credit (ITC) includes biogas property constructed prior to the end of 2024. The credit rate could amount to 30% of the investment, with a possible 10% bonus credit for projects that meet domestic content requirements. Anaergia expects the expanded ITC would directly benefit a number of biogas facilities currently under development in the US.
The creation of a new tax credit for domestic clean fuel production starting in 2025. The proposed tax credit could amount to up to $1.00 per gallon of nonaviation fuel and would apply to all transportation fuel sold until the end of 2027. Many of Anaergia’s facilities, both existing and under development, stand to benefit directly from this clean fuel production credit.
The extension and modification of the 45Q tax credit for carbon dioxide sequestration could offer credits of up to $85/ton of carbon geologically sequestered. This credit would apply to facilities that begin construction before the end of 2032 and lasts for the first 12 years of operation of the facility.
Anaergia was created to eliminate a major source of greenhouse gases by cost effectively turning organic waste into renewable natural gas (RNG), fertilizer and water, using proprietary technologies. With a proven track record from delivering world-leading projects on four continents, Anaergia is uniquely positioned to provide end-to-end solutions for extracting organics from waste, implementing high efficiency anaerobic digestion, upgrading biogas, producing fertilizer and cleaning water. Our customers are in the municipal solid waste, municipal wastewater, agriculture, and food processing industries. In each of these markets Anaergia has built many successful plants including some of the largest in the world. Anaergia owns and operates some of the plants it builds, and it also operates plants that are owned by its customers.
This news release contains forward-looking information within the meaning of applicable securities legislation, which reflects the Company’s current expectations regarding future events, including statements relating to the ability of our technologies and projects to address about two-thirds of all point source methane emissions and our business plans, growth strategies and ESG initiatives. Forward-looking information is based on a number of assumptions and is subject to a number of risks and uncertainties, many of which are beyond the Company’s control. Such risks and uncertainties include, but are not limited to, the factors discussed under "Risk Factors" in the Company’s annual information form dated March 28, 2022, for the fiscal year ended December 31, 2021. Actual results could differ materially from those projected herein. Anaergia does not undertake any obligation to update such forward-looking information, whether as a result of new information, future events or otherwise, except as expressly required under applicable securities laws.
For further information please see: www.anaergia.com
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