Clean Energy

Unleashing a New Era of Clean Energy Investment

Author:

Neil Winward

Founder and CEO

Dakota Ridge Capital

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As the clean energy transition accelerates, savvy investors are no longer just watching legislation—they’re leveraging it. Two of the most powerful tools reshaping the renewable energy market are Section 45Z and Section 45Q of the U.S. Internal Revenue Code. These provisions, enhanced under the Inflation Reduction Act (IRA), are not just tax credits—they’re long-term value engines for capital allocators and developers alike.

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At Dakota Ridge Capital, we believe understanding and capitalizing on these credits is essential for investors seeking strong returns and measurable climate impact.

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What is Section 45Z? The Clean Fuel Production Credit

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Section 45Z introduces a technology-neutral, performance-based tax credit for domestic production of clean fuels. Set to launch in 2025, this program replaces older credits like 40B and 45Q (for ethanol/biodiesel), creating a streamlined, carbon-intensity-based incentive.

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Key Highlights:

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Incentivizes low-carbon fuels: including sustainable aviation fuel (SAF), renewable diesel, and hydrogen.
Rewards carbon efficiency over fuel type.
Offers credits up to $1.00/gallon for SAF, and $0.20/gallon for other fuels.
Applies from 2025 to 2027, setting a transition runway for producers.

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For investors, this is a chance to back fuel producers who lead in lifecycle emissions reduction—transforming compliance into profitability.

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What is Section 45Q? The Carbon Capture Game-Changer

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Section 45Q, initially enacted in 2008, has been supercharged under the IRA. It now supports carbon capture, utilization, and storage (CCUS) projects at a scale previously unseen.

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Key Enhancements:

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Credit value raised to $85/ton (for permanent sequestration), $60/ton for utilization/EOR.
Significantly lowered eligibility thresholds, making more projects viable.
Introduced Direct Pay and Transferability, unlocking flexible financing routes.

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From ethanol and cement to power generation, 45Q is turning waste CO₂ into an asset—and creating a boom in retrofitting and CCUS infrastructure.

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Investment Implications: Where Opportunity Meets Impact

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Sections 45Z and 45Q create not just regulatory support, but investment-grade revenue streams. Here's how smart capital can play:

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Tax Equity Structuring: High-value credits drive sophisticated deal-making through layered equity, tax equity, and direct pay models.
Asset Upside: Facilities optimized for carbon performance or carbon capture command a premium in today’s M&A landscape.
Technology Risk Reduction: Policy-backed credits de-risk new fuel and CCUS technologies, accelerating adoption.

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These provisions allow investors to align capital with both climate goals and cash flows—a rare convergence in modern markets.

We Guide Investors

Including banks, family offices, HNWIs, non-profits—and developers in making strategic investments in clean energy projects that create tax credits to lower investors’ tax liability while providing essential capital for developers.

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Partner with Dakota Ridge Capital: Navigate, Structure, Scale

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Navigating the evolving tax and policy landscape requires deep expertise, proactive strategy, and a network of specialized partners.

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At Dakota Ridge Capital, we work directly with:

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Clean fuel producers looking to monetize 45Z credits
CCUS project developers optimizing for 45Q
Institutional investors and family offices seeking structured entry points
Asset owners evaluating retrofit opportunities for tax optimization

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We provide capital structuring, due diligence, regulatory interpretation, and long-term strategic alignment—ensuring that every investment is not just compliant, but highly competitive.

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Ready to Activate the Next Generation of Clean Energy Investment?

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Whether you're scaling a CCUS project or launching a low-carbon fuel facility, Sections 45Z and 45Q present powerful opportunities—but only with the right financial partner at your side.

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Visit Dakota Ridge Capital today and discover how we can help you turn clean energy incentives into real-world returns

Neil Winward is the founding partner of Dakota Ridge Captial, helping investors, developers, banks, non-profits, and family offices unlock massive tax savings - on average of 7%- 10% - via clean energy investments by fully leveraging U.S. government incentives such the Inflation Reduction Act.

Before founding Dakota Ridge Capital, Neil held significant leadership roles at Dresdner Kleinwort, ORIX Corporation USA, and Sevara Capital Advisors. By choosing clean energy, investors can save on taxes, and developers can get the capital they need to complete their projects. Let Dakota Ridge help you turn government incentives into your next big win in the clean energy market.

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Neil Winward

Unlock the potential of federal clean energy grants and incentives with expert guidance from Dakota Ridge Capital. Invest smartly and boost your returns.

The clean energy revolution is creating lucrative opportunities for investors across the US. With the government pushing for a sustainable future, federal clean energy grants and incentives are making it easier for businesses and individuals to invest in renewable energy projects. But navigating the complex process of applying for these grants can be daunting.

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This is where Dakota Ridge Capital steps in to simplify the process and ensure that investors tap into the right funding sources efficiently. Whether you are considering investing in solar, wind, or biofuel projects, understanding available federal incentives can significantly increase your return on investment.

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Why Federal Clean Energy Grants Are a Game-Changer

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The US government has allocated billions of dollars toward clean energy development. Federal grants, tax credits, and incentive programs are designed to encourage investments in renewable energy projects, making the sector more appealing to investors. These programs help reduce initial costs and accelerate the adoption of clean technologies.

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Key Benefits of Federal Clean Energy Grants and Incentives:

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Lower Project Costs: Grants and incentives can offset a significant portion of capital investment.
Higher Returns: Reduced upfront expenses allow for faster ROI.
Long-Term Savings: Clean energy technologies lower operational costs over time.

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Top Federal Clean Energy Incentives Available in the US

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Investors in the renewable energy sector can take advantage of several government-backed programs. Some of the most prominent include:

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Incentive Program	Details	Eligibility
Federal Investment Tax Credit (ITC)	Provides a tax credit of up to 30% for solar, wind, and other renewable projects.	Businesses, homeowners, and nonprofits
Production Tax Credit (PTC)	Offers per-kilowatt-hour tax credits for electricity generated by renewable sources.	Large-scale renewable energy developers
Rural Energy for America Program (REAP)	Provides grants and loans for rural businesses to adopt clean energy technologies.	Agricultural producers and rural small businesses
Clean Hydrogen Production Tax Credit	Incentivizes clean hydrogen production with substantial tax benefits.	Clean hydrogen project developers
Energy Efficiency and Conservation Block Grant	Supports energy efficiency upgrades in communities.	State, local, and tribal governments

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How Dakota Ridge Capital Simplifies Access to Clean Energy Incentives

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Navigating the maze of government funding programs can be overwhelming, especially with strict eligibility criteria and tight application deadlines. Dakota Ridge Capital helps clients identify, apply for, and secure federal clean energy grants and incentives with ease.

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With a team of experts well-versed in the nuances of applying for clean energy grants in the US, we ensure that your investment in renewable energy is supported by the best available funding programs. By choosing Dakota Ridge Capital, you’re not just investing in clean energy—you’re investing with a partner who understands the intricacies of federal clean energy grants and guides you every step of the way.

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Why Partnering with Dakota Ridge Capital Is the Right Choice

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At Dakota Ridge Capital, we offer more than just advice. Our end-to-end approach helps clients with:

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Grant Identification: We identify the most relevant grant and incentive programs for your project.
Application Assistance: We streamline the application process, ensuring compliance with all federal requirements.
Strategic Investment Planning: We align clean energy incentives with your long-term financial goals.

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Visit Dakota Ridge Capital to learn more about how we can position your investments for maximum success.

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Future Outlook: Why Now Is the Best Time to Invest

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The clean energy sector in the US is poised for rapid growth, with government incentives driving the adoption of solar, wind, biofuels, and hydrogen technologies. According to market projections, the US` renewable energy market is expected to grow at a CAGR of 8.4% from 2024 to 2030, creating a robust environment for long-term investments.

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Investing in clean energy has never been more rewarding, thanks to federal clean energy grants and incentives that reduce initial costs and boost long-term returns. However, successfully navigating the funding process requires expertise and experience.

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Dakota Ridge Capital is your trusted partner in securing government funding for renewable energy projects. With a deep understanding of federal grant programs and tax credits, we ensure that you maximize your clean energy investments while contributing to a sustainable future.

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To explore how Dakota Ridge Capital can help you access the right funding programs, contact us today.

Unleashing a New Era of Clean Energy Investment

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