Understanding Carbon Intensity

In today’s energy landscape, one metric is shaping how fuels are produced, evaluated, and valued: Carbon Intensity (CI).

For renewable fuel producers, CI isn’t just a technical measurement. CI is one of the most important indicators of environmental impact, operational efficiency, and market competitiveness. Programs like California’s Low Carbon Fuel Standard (LCFS) place CI at the center of the clean fuels transition, rewarding fuels that produce fewer lifecycle greenhouse gas emissions.

But what exactly does Carbon Intensity mean, and why does it matter?

Carbon Intensity measures the total greenhouse gas emissions associated with producing and using a fuel, expressed as grams of CO₂-equivalent per megajoule of energy (gCO₂e/MJ).

The key word here is total. 

CI doesn’t just look at emissions from burning a fuel in a vehicle. Instead, it accounts for the entire lifecycle — from the field to the fuel tank. This includes emissions from:

 Growing and harvesting feedstocks

• Transporting raw materials
• Producing the fuel at a facility
• Energy used during processing
• Distributing the finished fuel
• Final combustion in vehicles 

Because it evaluates the entire lifecycle, CI provides a much more accurate picture of a fuel’s real environmental impact.

As governments and industries work to reduce greenhouse gas emissions, policies are increasingly rewarding fuels with lower CI scores. In markets like California, fuels with lower carbon intensity generate valuable credits under the Low Carbon Fuel Standard (LCFS). These credits help incentivize continued innovation and investment in cleaner fuel pathways. For producers, this means that carbon performance matters as much as production volume.

Lower CI fuels can unlock:

• Greater credit generation
• Improved economics in regulated fuel markets
• Stronger positioning in low-carbon supply chains

In other words, the cleaner the fuel’s lifecycle, the more value it can create.

Reducing carbon intensity requires continuous improvement across the production process. For ethanol producers, this can include:

• Increasing plant efficiency
• Integrating renewable energy sources
• Capturing and utilizing carbon dioxide
• Improving feedstock sourcing and logistics

Each improvement lowers the lifecycle emissions associated with the fuel. 

Over time, these incremental changes can dramatically reduce a facility’s carbon footprint — and its CI score.

At Calgren, reducing carbon intensity is not a one-time initiative. It’s an ongoing commitment that shapes how we operate and invest for the future.

Our facilities are designed to maximize efficiency while integrating technologies that support lower lifecycle emissions. During ethanol fermentation, carbon dioxide is naturally produced as yeast converts sugars into ethanol. Today, that CO₂ can be captured and purified for use in industrial applications such as food processing and beverage carbonation, where it displaces CO₂ that would otherwise need to be produced from other sources. 

Calgren also continues to advance the Tulare Carbon Capture and Storage Project, which will enable captured CO₂ to be permanently stored deep underground in geologic formations. Unlike industrial reuse, this form of carbon capture and storage (CCS) permanently sequesters CO₂ and can significantly reduce the carbon intensity of the fuel produced at the facility. 

Calgren also integrates renewable energy solutions, including renewable natural gas systems that convert dairy manure into pipeline-quality fuel. By turning agricultural waste into usable energy, we help reduce methane emissions while supporting local dairy operations.

These efforts reflect a broader philosophy: clean energy works best when systems are connected. By linking agriculture, fuel production, and renewable energy infrastructure, we can reduce emissions while strengthening rural economies.

The role of carbon intensity in fuel markets will only continue to grow.

As transportation, agriculture, and energy systems work together to reduce emissions, CI provides a clear and consistent way to measure progress. It helps producers innovate, policymakers create effective incentives, and consumers gain access to cleaner fuel options. 

For Calgren, the goal is simple: continue improving the carbon performance of the fuels we produce while supporting the communities and industries that make renewable energy possible.