The Digest’s 2026 Multi-Slide Guide to ATJ and HEFA Cost Parity

Alcohol-to-Jet (ATJ) sustainable aviation fuel can achieve cost parity with HEFA, but only through a specific stacking architecture, not as a general pathway property. To cross the cost threshold, developers must rigorously stack certified low-carbon intensity (CI) ethanol with 45Z-eligible on-site carbon capture. Crucially, 45Z and 45Q credits are mutually exclusive year-by-year toggles at the ethanol plant; modeling them additively overstates the crossover. Projects must resolve carbon title and this tax election before engineering freezes.

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Category: Multi-Slide Guides