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

FOR IMMEDIATE RELEASE

June 1 , 2007

1st Quarter E85 Sales Up 37% Over 2006

E85 Wholesale Costs Now Substantially Below Regular Unleaded

JOHNSTON, IA – The Iowa Renewable Fuels Association (IRFA) today announced that E85 sales in Iowa continued strong growth in the first quarter of 2007 despite a temporary, but challenging pricing environment.  According to the Iowa Department of Revenue, sales of E85 by Iowa retailers reached 407,932 gallons during the first quarter of 2007.  That was a 37% increase over the same time period in 2006.

“Greater consumer access is leading to greater E85 sales, but Iowa has a long way to go,” said Monte Shaw, IRFA Executive Director.  “Despite having less than twice as many flexible fuel vehicles, Minnesota has five times as many E85 pumps.  Consumer access is our biggest challenge.”

E85 wholesale prices are attractive relative to regular unleaded after a challenging period dating back to 2006.  Ethanol was called upon to replace MTBE nationwide over a period of just a few months.  The unexpectedly short transition period put upward pressure on ethanol prices at that time.

“Based on the Des Moines terminal market, E85 could be priced more than 70 cents below regular unleaded once you factor in the state and federal incentives,” continued Shaw.  “We know E85 retailers went through a tough time in 2006 and we’re excited to hear how the larger price spread is really driving demand.”

Iowa is the leader in renewable fuels production.  Iowa has 11 biodiesel refineries with a combined annual capacity of nearly 200 million gallons in operation.  Three biodiesel refineries under construction will add 120 million gallons of capacity.  In addition, Iowa has 28 ethanol refineries with the capacity to produce nearly 1.9 billion gallons annually.  There are 19 ethanol refineries under construction or expansion that will add over 1.4 billion gallons of annual capacity.  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.

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