Green Plains Inc. (NASDAQ: GPRE) has entered into a definitive agreement to monetize Clean Fuel Production Tax Credits, known as 45Z credits, generated during 2026. The agreement, executed on October 29, 2026, involves the sale of credits produced at the company’s operating facilities to two unaffiliated institutional counterparties.
Under the terms of the Tax Credit Purchase Agreement, Green Plains has committed to deliver a minimum of $250 million in credits, with the option to sell up to $325 million in aggregate. The transaction includes an additional option for the buyers to purchase an extra $30 million of credits, subject to their generation and availability. The value of the credits is based on anticipated generation under current carbon intensity scores and does not assume further investment in low-carbon initiatives.
Green Plains will receive $140 million in cash during the fourth quarter of 2026 for credits generated through June 30, 2026. The remaining proceeds, covering credits generated in the third and fourth quarters of 2026 and any final true-up amounts, are expected to be received in the first half of 2027. The buyers consist of a leading U.S. life insurance company and an investment subsidiary of a Fortune-ranked engineering and construction company, with the latter's obligations guaranteed by its ultimate parent.
The company stated that the agreement provides visibility into cash generation and offers flexibility to strengthen its balance sheet and reinvest in high-return opportunities. Green Plains noted that the credits are transferable under the program, subject to actual production volumes and regulatory requirements.
