A new report has found that despite current challenges, Iowa biofuel production continues to have a significant impact on Iowa’s economy.
The report found that its growing production currently supports more than 48,000 jobs and more than $2.4 billion (2.16billion euros) in household income.
The study that was put together by John Urbanchuk, of ABF Economics, and commissioned by the Iowa Renewable Fuels Association, also found that biofuels continue to account for more than $5 billion (4.5 billion euros) of Iowa’s GDP, or about three percent.
The study looked at the many challenges the industry faced in the past 12 months, including the lapsed biodiesel tax credit and the demand destruction caused by excessive Renewable Fuel Standard (RFS) refinery exemptions.
The study found Iowa biofuels production could have supported more than 4,000 more jobs and $200 million (180 million euros) more in household income in 2019 had the exemptions not been granted.
“This study confirms two very important truths – that biofuels continue to play a crucial role in Iowa’s economy, and that role was significantly hampered by RFS exemptions,” said IRFA Executive Director Monte Shaw. “We are encouraged to see that despite the hard times and policy uncertainty Iowa producers faced in 2019, the economic benefits are still strong. It is, however, disheartening to know how much greater the benefits could have been to Iowa had EPA not granted over a billion gallons worth of demand-destroying RFS exemptions.”
Looking forward, the study concludes that growth of the biofuels sector “through new technologies and feedstocks” will only serve to enhance the economic impact of the industry, but “policy stability is essential to maximize these benefits. Uncertainty surrounding issues like RFS refinery exemptions, tax credit extensions, and trade with China, will impede the ability of the industry to provide these societal benefits.”
LATEST VIDEOHow sustainable aviation fuel (SAF) is making its way in the aviation sector
Popular News Stories