Misinterpretation or Stupidity

Is there anything wrong with this sentence? (I don't mean the grammar.)

We should also expand tax incentives to encourage carbon-free biofuels production at both existing and new biofuels facilities.*

Did the writer mean "encourage carbon-free production methods of biofuels", or "encourage production of carbon-free biofuels"?

I certainly hope it was the former.

*This was taken from a US newspaper's Op-Ed piece written by an "environmental law attorney".