FOR IMMEDIATE RELEASE
October 29, 2012
Iowa Biodiesel Production Remained Strong in Third Quarter
Iowa On Track to Set Biodiesel Production Record in 2012
JOHNSTON, IA – The Iowa Renewable Fuels Association (IRFA) announced today that biodiesel production remained strong during the third quarter of 2012. According to figures released by the Iowa Department of Revenue (DOR), 10 Iowa biodiesel plants claimed tax credits on more than 44.2 million gallons of production from July through September. One or more of the production facilities have reached the tax credit program cap, therefore actual Iowa biodiesel production was higher than the number submitted for credits.*
In 2011, the Iowa Legislature enacted a short-term, modest biodiesel production tax credit to help Iowa’s biodiesel community compete against states that provide large biodiesel incentives. The Iowa program went into effect on January 1, 2012.
“While 4th quarter demand appears to be down somewhat, Iowa produced more than 150 million gallons of biodiesel during the first three quarters of 2012 and is on target to break the biodiesel production record of 169 million gallons set in 2011,” said IRFA Executive Director Monte Shaw. “That is great news for Iowa jobs and farm income. It is also good news for Iowa livestock producers because biodiesel production increases the value of their animals while reducing their feed costs.”
Biodiesel is produced in Iowa from soybean oil, animal fats, and other feedstocks. By creating more demand for soybean oil, biodiesel lowers the cost of soybean meal which is also produced when soybeans are crushed. In addition, the value of animal fats has increased with biodiesel production, thereby adding value to cattle, hogs, and poultry raised in Iowa.
*IRFA conducts an annual survey of Iowa biodiesel production and will release full production results at the end of the year.
Iowa is the leader in renewable fuels production. Iowa has 13 biodiesel facilities with the capacity to produce 320 million gallons annually. In addition, Iowa has 41 ethanol refineries capable of producing nearly 3.7 billion gallons annually and one new facility 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.
For more information, visit the Iowa Renewable Fuels Association website at: www.IowaRFA.org