Press Contact: Hannah Love

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WEST DES MOINES, IA – With the commencement of CO2 shipments on the Tallgrass Trailblazer pipeline last week, which carries CO2 from several plants located in Nebraska to a sequestration site in Wyoming, Iowa has officially lost its “crown” as the best place in the world to produce corn ethanol. Ethanol plants able to capture and sequester CO2 can reduce their carbon intensity (CI) by up to 33 points, thereby qualifying for up to 66 cents per gallon under the federal tax credit program known as 45Z. 

“Congratulations to Tallgrass for this monumental achievement,” stated Iowa Renewable Fuels Association Executive Director Monte Shaw. “Huge new markets around the world are demanding ultra-low carbon ethanol and carbon capture and sequestration (CCS) is the best tool to get there. The plants on the Tallgrass pipeline now have a leg up in many ways. IRFA will be working hard to ensure Iowa plants have access to the tools they need to compete.” 

Iowa has been the most profitable place in the world to produce corn ethanol since 2000. As such, the industry expanded in the state to become the largest ethanol producer and many affiliated industries made investments in facilities and operations in Iowa. Last year, ethanol production in Iowa added nearly $5.2 billion to the state GDP, increased household income by $2.5 billion, and supported almost 33,000 jobs. 

“For the first time since 2000, Iowa is no longer the best place to produce corn ethanol,” stated Shaw. “Alarm bells should be going off with any leader who values Iowa’s rural economy. We need to work to ensure this is temporary, not permanent. The huge economy-wide benefits that reverberate out from ethanol production in Iowa are not a given. If Iowa does not remain competitive, those investments will flow to areas that are competitive.” 

Iowa farmer Steve Kuiper added, “”Corn farmers are currently facing projected losses of $388 per acre from 2023 to 2025. We are growing more corn with fewer resources but rising input costs and growing yields and global supply are not keeping pace with demand. To overcome these challenges, we need increased market access, such as the passage of E15 and expanded export channels, along with long-term solutions like carbon capture and storage (CCS) that some global markets are demanding to have access. Iowa must take advantage of these opportunities to ensure our corn and ethanol industries are profitable now and into the future.”

If Iowa’s 4.7 billion gallons of annual ethanol production all had access to CCS, it could generate over $3 billion of additional value for Iowa through 45Z tax credits, recently extended by President Trump. 

“Iowa needs to step up and get behind President Trump’s American energy dominance vision,” stated Shaw. “The Trump administration has prioritized extending clean fuel credits for American renewable fuels. Further, Trump has championed CCS as a vital tool to push America forward. As farmers face the fear of another farm crisis and ag industries continue to face economic challenges, now is the time to push CCS forward, not to stick our head in the sand.” 

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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.