IRFA Calls on Iowa Senate to Stand with Farmers Needing New Markets During Dire Economic Downturn

Contact: Monte Shaw
515-322-0435

WEST DES MOINES, IA – Today the Iowa House passed HF 943 that would essentially ban carbon capture and sequestration (CCS) pipelines in the state of Iowa. Access to CCS is vital to opening up new global markets for ultra-low carbon ethanol to grow corn demand and increase farm income. The Trump Administration has highlighted CCS as a key component to achieve American energy dominance.

“Today’s vote in the House was hardly surprising, but it is still disappointing,” said Iowa Renewable Fuels Association (IRFA) Executive Director Monte Shaw. “IRFA members have been saying for three years that CCS is the most important tool available to grow ethanol demand into new markets both here at home and around the world. As our pleas have fallen on deaf ears, what has happened? The largest two-year drop in farm income ever. Huge layoffs throughout the agriculture economy from equipment makers to coops. Several ethanol plants have shut their doors including one in Iowa. Just recently, Iowa was second only to Texas in the amount of emergency federal farm aid dispersed. Iowa farmers and ethanol producers want markets, not emergency assistance. Meanwhile our neighbors in Nebraska and our competitors in Brazil will have CCS projects in operation by the end of the year.”

The legislation now moves to the Iowa Senate, which unlike the House, has not voted to ban CCS technology in the past.

“We are confident that cooler heads will prevail in the Senate,” stated Shaw. “For three years we have reached out our hand to anyone wanting to enhance landowner rights while maintaining Iowa’s ability to grow its economy. That offer remains. The massive majority of impacted landowners have supported CCS projects with voluntary easements. But a small, though loud, minority want to override their rights. IRFA calls on the Iowa Senate to stand with the majority of impacted landowners, farmers, ethanol producers, and Iowa’s economic future to ensure the state has the tools it needs to meet the brewing economic disaster in the heartland.”

Emerging markets around the globe require low carbon ethanol, while new markets in heavy-duty engines, marine, rail and aviation are demanding ultra-low carbon ethanol. Market estimates for sustainable aviation fuel (SAF) alone are pegged at 100 billion gallons annually worldwide. If ethanol producers are allowed tools like CCS to access these markets, corn grind could increase by billions of bushels providing a huge boost to farm income.

The Iowa Renewable Fuels Association represents the state’s liquid renewable fuels industry and works to foster its growth. Iowa is the nation’s leader in renewable fuels production with 42 ethanol refineries capable of producing 4.7 billion gallons annually – including 34 million gallons of annual cellulosic ethanol production capacity – and 10 biodiesel facilities with the capacity to produce 416 million gallons annually. For more information, visit the Iowa Renewable Fuels Association website at: www.IowaRFA.org.

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