Jarrod Edelen's questions to REX AMERICAN RESOURCES (REX) leadership • Q2 2025
Question
Jarrod Edelen from the South Dakota Investment Council asked about the Carbon Intensity (CI) score of REX's main plants following recent 45Z legislation, the potential to qualify for credits without a carbon pipeline, the construction timeline post-Illinois moratorium, and the build time for the short-distance pipeline.
Answer
CEO Zafar Rizvi stated that REX has not publicly declared a CI score pending clear guidelines, but noted the removal of the 'Smart Farming' requirement is beneficial. Executive Chairman Stuart Rose added that plant efficiency upgrades create a chance for tax credits even before the carbon capture project is operational, but it's too early to confirm. Rizvi detailed that post-moratorium, the company needs permits from the local county, IEPA, and ICC. Once ICC approval is granted, the 6.5-mile pipeline would take a couple of months to build.