FOR MORE INFORMATION:
Monte Shaw, 515-252-6249

FOR IMMEDIATE RELEASE

January 27, 2009

New Study:  Even in Tough Year, Renewable Fuels

Power Iowa Economy

Idled Capacity is Big Opportunity for Iowa Economic Rebound

JOHNSTON, IA – At their 3rd Annual Iowa Renewable Fuels Summit today, the Iowa Renewable Fuels Association (IRFA) released a new study detailing the large impact the renewable fuels industry has on Iowa’s economy.  Even during this economic slump, the production of biodiesel and ethanol and the construction of new biorefineries continue to power Iowa’s economy.  Additionally, bringing idled capacity back into production could boost Iowa’s economic turnaround.

“2008 was a year of unprecedented challenges for the biofuels industry,” said economist John Urbanchuk, a director with LECG, LLC. “Despite the challenge to profitability, the biofuels industry continued to grow and met the Renewable Fuel Standard target of nine billion gallons for 2008. Iowa leads the Nation in biofuels output accounting for 26 percent of U.S. ethanol and 12 percent of biodiesel production capacity.”

According to the report, “Contribution of the Biofuels Industry to the Economy of Iowa,” Urbanchuk found that ethanol and biodiesel producers are part of a manufacturing sector that adds substantial value to agricultural commodities produced in Iowa and makes a significant contribution to the Iowa economy. Based on the renewable fuels refineries operating at year-end 2008, ethanol and biodiesel:

• Adds nearly $12.0 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 (or 5.4% of private, non-farm employment), and
• Generates $576 million in state tax revenue.

“In addition to the rather large current impact, increased demand for renewable fuels would provide a serious boost to Iowa’s economy,” said IRFA Executive Director Monte Shaw. “If the nine idled biodiesel and ethanol plants resumed production they would add $300 million to Iowans’ income, create over 9,000 new direct and indirect jobs and put over $70 million in additional tax revenues into the state coffers.  Clearly, boosting the demand for renewable fuels to bring these plants back on-line should be a top priority for our state and federal officials.”

For the complete report, click here.

Iowa is the leader in renewable fuels production.  Iowa has 38 operational ethanol refineries with a combined annual capacity of over 3 billion gallons.  There are 5 ethanol refineries under construction that will add nearly 700 million gallons of capacity.  In addition, Iowa has 14 biodiesel refineries with the capacity to produce over 317 million gallons annually.  Two biodiesel refineries under construction or expansion will add 35 million gallons of annual capacity.  Additional renewable fuels projects are under development.

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.