The Biofuel Industry's Contribution to the Iowa Economy

• Biofuels Industry Continues to Power Iowa Economy
  
  
  • Iowa leads the nation in biofuels output accounting for 26 percent of U.S. ethanol and 12 percent of biodiesel production capacity.

   

  • Ethanol and biodiesel producers are part of a manufacturing sector that makes a significant contribution to the Iowa economy.
    
    
  • Based on the operation of the biofuels refineries at year-end 2008, ethanol and biodiesel:
    
    
    • Adds nearly $12 billion, or about 9 percent, to Iowa GDP
    • Generates $2.8 billion of household income for Iowa households
    • Supports nearly 83,000 jobs through the entire Iowa economy
    • Generates $576 million in state tax revenue
      
      
  • The spending associated with ethanol and biodiesel production stimulates aggregate demand, supports the creation of new jobs, generates additional household income and provides tax revenue for State and local governments.
    

• Boost to IA Economy Potential
  
  
  • Despite the economic challenges of 2008, the biofuels industry continued to grow and met the federal Renewable Fuels Standard target of nine billion gallons.
    
    
  • Although the biofuels industry did experience growth in 2008, it too was not immune to the economic difficulties of the time.
    
    
  • As a direct result of the 2008 economic hardships, 4 ethanol plants with 305 million gallons of capacity and 5 biodiesel plants accounting for nearly 107 million gallons were idled in Iowa at the end of 2008.
    
    
  • Boosting demand for renewable fuels and operating these plants to their fullest potential will result in:
    
    
    • $1.6 billion being added to Iowa's GDP
    • $308 million added  to Iowa household income
    • The creation of 9,100 jobs
    • Increasing state tax revenue by $73 million
      
      

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Biodiesel Facts

• Biodiesel is a clean-burning, biodegradable, alternative fuel produced from vegetable oils or animal fats. To be called biodiesel, it must meet American Society for Testing & Materials (ASTM D-6751) quality specifications.

• Blends of biodiesel can range from one percent to 99 percent. Common blends used in Iowa are B2, B5, B10 and B20. Many farmers use even higher blend levels in their equipment.

• Biodiesel provides engine lubricity which helps extend engine life and reduce maintenance costs. Even biodiesel levels as low as one percent can provide up to a 65 percent increase in lubricity. 

• B100 reduces ozone (smog) formation by 50 percent.

• Biodiesel is a biodegradable, renewable fuel with positive performance benefits. Increased cetane, high fuel lubricity and increased oxygen content make it a preferred blending agent for ultra-clean diesel.

• As a domestically-produced fuel, biodiesel can reduce the need for fossil fuel and improve the nation’s energy security.

• Biodiesel is registered as a fuel and fuel additive with the EPA and meets clean diesel standards established by the California Air Resources Board (CARB). B100 (100 percent biodiesel) has been designated as an alternative fuel by the U.S. Department of Energy and the U.S. Department of Transportation. 

• Using biodiesel in diesel engines does not void parts and materials workmanship warranties of any major U.S. engine manufacturer. For a list of engine manufacturers' endorsements click here. For biodiesel warranty statements, go to: www.biodiesel.org/resources/fuelfactsheets.

• Biodiesel blended up to 20 percent exhibits cold flow properties similar to #2 diesel and can be used year-round.

• Biodiesel has the highest BTU content of any alternative fuel (ranging between #1 and #2 diesel fuel). 

• B100 reduces exhaust emissions of carbon monoxide by 48 percent and hydrocarbons by 67 percent. Sulfur emissions are essentially eliminated with B100.

• Every 200 gallons of pure soy biodiesel purchased in Iowa uses the soy oil from 143 bushels of soybeans. 

• A voluntary accreditation program has been established for biodiesel producers and marketers to ensure the highest quality standards are being met. BQ 9000 is a program that ensures biodiesel quality and integrity.

• Biodiesel is cost-competitive with conventional diesel. The long-term savings in reduced wear, repairs, maintenance and lost down time make biodiesel the best choice for America’s trucking industry.