FOR MORE INFORMATION:
Lucy Norton, Managing Director, 515-225-9242
Monte Shaw, Executive Director, 515-225-9242

FOR IMMEDIATE RELEASE

Central Iowa Energy Begins Construction on Biodiesel Refinery near Newton

JOHNSTON, Iowa - Jun 01, 2006 - The Iowa Renewable Fuels Association (IRFA) today congratulated Central Iowa Energy for beginning construction on its biodiesel refinery near Newton, Iowa. The facility will process soybean oil and animal fats into 30 million gallons of biodiesel and 3 million gallons of glycerin annually. The facility is owned by 533 Iowa investors, including many farmers.

“Central Iowa Energy is part of a new, larger, more flexible biodiesel industry that is growing to meet strong demand from consumers across the country,” said Monte Shaw, IRFA Executive Director. “On the local front, Central Iowa Energy is creating approximately 30 well paying jobs in a community that needs positive economic news. As has often been the case in the past, growth of the renewable fuels industry can provide that good news for small town America.”

The refinery is being built by the Renewable Energy Group (REG). REG was formed through a partnership with West Central Coop in Ralston, Iowa, engineering and construction firm Todd & Sargent in Ames, Iowa, and in alliance with process equipment builder Crown Iron Works, in Minneapolis, Minnesota.

“It's an exciting time to be involved in renewable energy; to work with the Board and all the investors that made Central Iowa Energy become a reality,” stated Jim Johnston, Chairman of Central Iowa Energy. “Jasper County will benefit from the jobs created by the biodiesel plant. The farmers in Iowa will also benefit from the increase demand for soy oil and animal fat. We will keep our fuel dollars at home which will keep America strong. Tax revenue created from the sale of biodiesel produced here in Iowa will help the State grow and prosper.”

Iowa is the leader is renewable fuels production. Currently, Iowa has 8 biodiesel refineries with a combined annual capacity of over 150 million gallons either in operation or under construction. In addition, Iowa has 25 ethanol refineries with the capacity to produce over 1.5 billion gallons annually. There are 4 ethanol refineries and two expansions under construction with a combined annual capacity of 425 million gallons. Many additional renewable fuels projects are under development.

The Iowa Renewable Fuels Association was formed in 2002 to represent the state’s ethanol and biodiesel producers. The trade group fosters the development and growth of the renewable fuels industry in Iowa through education, promotion, legislation and infrastructure development.