Press Contact: Monte Shaw

515-252-6249

Reinstatement of Biodiesel Tax Credit Should Boost Production Further in 2013

JOHNSTON, IA – The Iowa Renewable Fuels Association (IRFA) today announced that Iowa’s biodiesel plants set a new record in 2012 by producing 184 million gallons of biodiesel, up from the previous record of 169 million gallons in 2011. Though a new record was set, biodiesel production was held back by the failure of Congress to reinstate the biodiesel tax incentive despite giving billions in tax subsidies to petroleum based fuels.

“Biodiesel production in Iowa continued to march forward and set a new record again this year,” stated IRFA Executive Director Monte Shaw. “However, production was held back by the lack of the biodiesel tax incentive during 2012. Now that Congress has reinstated the biodiesel tax credit for 2013, we would expect biodiesel production to grow even further.  That’s good news for Iowa jobs, the environment and energy security.”

Soybean oil continues to be the biodiesel feedstock of choice, accounting for 72 percent of production. Animal fats came in second at 18 percent, while canola oil, inedible corn oil, and used cooking oil made up the remaining 10 percent.

Iowa is the leader in renewable fuels production. Iowa has 12 biodiesel facilities with the capacity to produce 315 million gallons annually. In addition, Iowa has 41 ethanol refineries capable of producing nearly 3.7 billion gallons annually, with one traditional ethanol plant and two cellulosic ethanol facilities currently under construction.

The Iowa Renewable Fuels Association was formed in 2002 to represent the state’s liquid renewable fuels industry. The trade group fosters the development and growth of the renewable fuels industry in Iowa through education, promotion, legislation and infrastructure development.