Iowa Biodiesel Production Poised to Double

Joanna Schroeder

Iowa Biodiesel producers and supporters took to the Iowa State Capitol yesterday during the Iowa Biodiesel Board’s (IBB) annual Day on the Hill. While there they asked legislators for their support in fulfilling a bold new domestic energy goal. The Iowa Biodiesel Board (IBB) is asking for expanded state policies that foster biodiesel growth and will be good for Iowans through increased economic activity, job growth and national energy prestige.

IBB leaders said Iowa biodiesel production could double by 2022 as a part of a new national goal. Last week, the National Biodiesel Board (NBB) unveiled the new goal: “10 by 22,” which means biodiesel would make up 10 percent of the nation’s on-road diesel supply by 2022. According to NBB, reaching this goal depends upon continued technological and agricultural advancements, but is responsible and attainable.

IowaBiodieselBoardLogo“As the nation’s leading biodiesel producer, Iowa is poised to play a major role in this bold new effort, and would benefit from the increased production,” said Randy Olson, IBB executive director. “Under the 10 by 22 plan, we estimate Iowa could double its production, which would mean current plants would operate at or near full capacity. This would enhance Iowa’s economic development.”

Olson added that successful state policies, such as the current incentive for fuel retailers to blend biodiesel and a producer’s credit, help keep Iowa competitive with surrounding states.

Recent economic studies show Iowa biodiesel supported nearly 5,000 jobs in the state in 2012. The industry’s contribution to Iowa’s GDP was nearly $400 million in 2012. Also, corn, soybean and livestock producers all benefit from biodiesel production, according to economic analysis. IBB says the industry’s 10 x 22 goal envisions a more diversified future energy portfolio that would include biodiesel making up 10 percent of the diesel fuel supply. This goal is benchmarked to the on-road volumes but expected to be used in various blend levels in various applications.

advance biofuels, Biodiesel, NBB