North Dakota ethanol plant Red Trail Energy is partnering with sustainable agricultural solutions company Indigo Ag to help source corn with lower carbon intensity. The plant is preparing to take advantage of the Clean Fuel Production tax credit that is going into effect next year.

Indigo Ag will identify whether farms implement sustainable practices such as cover crops and reduced tillage to produce low-carbon corn. Red Trail Energy will then purchase the corn at a premium.

The goal is to use the low-carbon corn to lower the carbon-intensity score of Red Trail Energy’s ethanol. This will boost the plant’s ability to take advantage of low-carbon fuel markets like California and the 45Z Clean Fuel Production tax credit. The 45Z Clean Fuel Production tax credit takes effect next year. Non-aviation biofuel producers can earn 2¢ per gallon if the fuel has a carbon intensity score of 49.

Read more about low-carbon intensity ethanol here.