Record biodiesel production in Iowa but uncertainty remains

Production of biodiesel in Iowa, US hit record heights in 2013 but the Iowa Renewable Fuels Association (IRFA) believes uncertain federal biodiesel policy could threaten recent growth in lower carbon intensity feedstocks.

The IRFA revealed biodiesel production topped 230 million gallons, up 25% on 2012, and the state is expected to account for 13.5% of total US biodiesel production last year.

But uncertainty hangs over the biodiesel industry in 2014 as Congress allowed the federal biodiesel blenders tax credit to expire and the Environmental Protection Agency (EPA) is proposing to weaken the Renewable Fuel Standard (RFS). 

‘Iowa continues to lead in the production of biodiesel,’ says IRFA executive director Monte Shaw. ‘However, many plants across the nation are shut as the market waits to see what happens with the RFS. We feel the EPA needs to uphold Congressional intent and maintain a robust RFS for biodiesel of at least 1.7 billion gallons for 2014.’

Soybean oil remained the leading biodiesel feedstock in Iowa, accounting for 68% of production.  However, the use of lower carbon intensity feedstocks doubled over the previous year.  Animal fats accounted for 27% of biodiesel feedstocks, while used cooking oil, inedible corn oil and canola oil accounted for the remaining 5%.

‘How does it make sense for the EPA to gut the advanced biofuels portion of the RFS when the impact will likely be a reduction in the use of lower carbon intensity feedstocks like animal fats and used cooking oil?  That runs counter to the intent of the law,’ adds Shaw.

Iowa currently has 12 biodiesel facilities with a capacity to produce nearly 315 million gallons annually.