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New incentives for biogas systems welcomed as ‘win-win for everyone’

The American Biogas Council, the trade association representing the US biogas industry, has welcomed the recent Agricultural Environmental Stewardship Act (S.998).

Introduced by Senator Sherrod Brown of Ohio and Pat Roberts of Kansas, the new act will increase the sustainability of farms by helping to deploy new nutrient recovery and biogas systems to recycle organic material in baseload renewable energy and healthy soil products. A key component of the new legislation is a 30% investment tax credit for qualifying biogas and nutrient recovery systems.

"We thank Senators Brown and Roberts for their strong recognition of the need for clean waterways and more productive soils which contribute to healthier communities and a stronger economy. Biogas and nutrient recovery systems make these goals obtainable and this legislation will help incentivize those technologies," said Patrick Serfass, executive director of the American Biogas Council (ABC).

"When we incentivise sustainable farming that includes recycling of organic material and nutrients, we create beneficial soil products, baseload renewable energy and jobs while protecting our watersheds."   

Prior to S. 988, no tax credit existed to incentivise biogas or nutrient recovery. A press release from ABC argues that the introduction of one would promote the production of pipeline quality natural gas and compressed renewable natural gas vehicle fuel as well as nutrients which are vital to the production of agriculture. 

“This is a great example of prudent tax policy," said Matt Carr, executive director of the Algae Biomass Organization. "By supporting investments in algae-based and other nutrient management systems, the Agriculture Environmental Stewardship Act will help farmers recycle valuable ag nutrients back into their operations and reduce the taxpayer burden of recovering those nutrients downstream. It's a win-win for everyone." 





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