<h1>Renewable fuels producer contracts $30M MVR upgrade to cut gas use 80%, boost LCFS credits and Section 45Z tax eligibility</h1> A renewable fuels producer entered a $30 million upgrade contract with an equipment supplier and a construction subcontractor to install a Mechanical Vapor Recompression system at its California ethanol facility, scheduled for completion Q2 2026. The project is supported by roughly $19.7 million in public grants and tax incentives and aims to reduce natural gas use ~80%, increase LCFS credit generation, and expand eligibility for Section 45Z production tax credits. Key legal considerations include performance and delivery obligations, incentive and tax-credit eligibility and documentation, allocation of construction and operational risk, warranty and indemnity provisions, and regulatory compliance with California LCFS and federal tax rules.